Rupee stabilizes at 83.43 against US dollar in early trade

Forex traders noted pressure on the Indian currency due to rising crude oil prices, but it received support from positive domestic equity market sentiment and foreign capital inflows

Mumbai: The rupee traded on a flat note at 83.43 against the US dollar in early trade on Thursday amid a strong greenback after the American central bank decided to keep interest rate unchanged.

Forex traders said that an upward movement in the crude oil prices also pressured the Indian currency. However, it found support from positive domestic equity market sentiment and inflow of foreign capital.

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At the interbank foreign exchange, the domestic unit opened strong at 83.41 but later slipped to its previous closing level of 83.43 against the dollar.

The rupee had settled 2 paise higher at 83.43 against the dollar on Tuesday, a day after losing 7 paise on Monday.

Foreign exchange market was closed on Wednesday on account of Maharashtra Day.

On Wednesday, the US Federal Reserve decided to maintain the status quo on the benchmark interest rates, which was in line with the market expectations.

Analysts said that market participants will keep a close watch on the US non-farm payroll data to be released on Friday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.02 per cent to 105.64.

Brent crude futures, the global oil benchmark, advanced 0.56 per cent to USD 83.91 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 152.67 points or 0.20 per cent higher at 74,635.45. The broader NSE Nifty advanced 25.75 points or 0.11 per cent to 22,630.60.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Tuesday, as they purchased shares worth Rs 1,071.93 crore on a net basis, according to exchange data.

India’s Goods and Services Tax (GST) collections grew 12.4 per cent to a record high of Rs 2.10 lakh crore in April, aided by strong economic momentum and increased domestic transactions and imports, the finance ministry said on Wednesday.