Rupee rises 14 paise to close at 82.58 against US dollar

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Image not used for representational purpose only.
| Photo Credit: Reuters

The rupee appreciated by 14 paise to 82.58 (provisional) against the U.S. dollar on May 26, supported by foreign capital inflows and a positive trend in domestic equities.

However, the elevated level of the U.S. dollar against major crosses overseas restricted the upward movement in the domestic unit, forex traders said.

The dollar index is trading above the 104-level on safe-haven appeal, as U.S. President Joe Biden and Republican House Speaker Kevin McCarthy are reportedly close to reaching an agreement on the U.S. debt ceiling.

At the interbank foreign exchange market, the local unit opened at 82.73 against the U.S. dollar and settled at 82.58 (provisional), up 14 paise over its previous close.

During the day, the domestic unit witnessed an intra-day high of 82.56 and a low of 82.73 in the day trade.

On Thursday, the rupee closed at 82.72 against the U.S. currency.

“The Indian rupee erases weekly losses amid a rally in the domestic equities followed by foreign fund inflows and recovery in the Asian currencies,” said Dilip Parmar, Research Analyst, HDFC Securities.

Investors are keeping an eye on a potential debt-ceiling deal, which could happen over the weekend ahead of the U.S. Holiday on Monday.

“The rupee has been propped up by attractive carry trade after a recent pause from the RBI. Spot USD/INR is expected to find support around 82.50 amid month-end inflows from MSCI rebalancing while 82.90 remains the biggest hurdle to cross,” Parmar added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.19% to 104.04.

Global oil benchmark Brent crude futures advanced 0.56% to $76.69 per barrel.

On the domestic equity market front, the 30-share BSE Sensex advanced 629.07 points or 1.02% to end at 62,501.69 points, and the broader NSE Nifty rose 178.20 points or 0.97% to 18,499.35 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Thursday as they purchased shares worth ₹589.10 crore, according to exchange data.

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