The Indian rupee has shown a remarkable performance, appreciating by 36 paise to settle at 86 against the US dollar on Friday. This marks the sixth consecutive session of gains, driven by a significant uptick in domestic equity markets and an influx of foreign capital. The rupee started the day at 86.26, reaching a high of 85.93 and dipping to a low of 86.30 before closing at its strongest point of the day.
Consistent Gains for the Rupee
The rupee’s recent rally is noteworthy, as it has accumulated a total gain of 123 paise over the past six sessions. On Thursday, the currency experienced minimal movement, gaining just 1 paisa to finish at 86.36.
- Current Rupee Value: 86 (provisional)
- Total Gain Over Six Sessions: 123 paise
- Previous Closing: 86.36
Market Influences
Anuj Choudhary, a research analyst at Mirae Asset Sharekhan, suggests that the rupee’s upward trajectory is linked to robust domestic equity performance and fresh inflows from foreign institutional investors (FIIs). He noted that while the rupee is expected to trade higher, increases in crude oil prices could limit its gains. The anticipated USDINR spot price range is projected between 85.80 and 86.25.
Broader Economic Context
The dollar index, which measures the dollar’s strength against six major currencies, rose by 0.19% to 104.04. In contrast, Brent crude oil prices decreased by 0.29%, settling at $71.79 per barrel in futures trading.
Equity Market Performance
In the domestic stock market, there was a significant rise in investor sentiment. The BSE Sensex climbed by 557.45 points (or 0.73%), reaching 76,905.51, while the Nifty gained 159.75 points (or 0.69%) to close at 23,350.40. Notably, FIIs have been active in the market, purchasing equities worth ₹3,239.14 crore on a net basis as of Thursday.
This consistent performance of the rupee reflects a positive outlook for the Indian economy, highlighting the interplay between currency values, foreign investments, and market dynamics. As we look ahead, the currency’s trajectory will undoubtedly be influenced by ongoing global economic conditions and local market developments.
