The rupee witnessed a rise against the dollar for the second consecutive trading day. According to experts, there has been an increase in the rupee due to the fall in the dollar. However, profit-booking by foreign investors limited this rise. Otherwise the market condition could have been even better. Although, when the currency market was last opened on Tuesday, the rupee appeared to be benefiting from the fall in crude oil prices, but on Thursday, a rise in crude oil prices was seen. Now the biggest question is whether the effect of dollar and American tariffs is ending? This question arises because the rupee has seen a rise for the second consecutive trading day. However, experts believe that it is too early to say this. Let us also tell you what kind of figures are being seen in the currency market on Thursday?
Rupee increased for the second consecutive day
The rupee on Thursday appreciated by 10 paise to 88.60 against the US dollar (provisional), supported by the American currency’s weak performance against key foreign rivals. Forex traders said subdued sentiment in domestic stock markets and continued outflow of foreign capital capped sharp gains in the Indian currency. At the interbank foreign currency exchange market, the rupee opened at 88.51 and touched a high of 88.49 against the dollar. It also touched a low of 88.66, but finally closed at 88.60 (provisional) against the dollar, which is 10 paise higher than its previous close.
Why did the rupee rise?
Weakness in the dollar index supported the rupee, however, Research Analyst Jatin Trivedi, Vice President, Commodity and Currency, LKP Securities, said continued selling by foreign institutional investors (FIIs) limited the rupee’s upward momentum, putting mild pressure on the domestic currency. Trivedi said market participants’ focus is now on key US economic data to be released this week, including ISM manufacturing and non-manufacturing PMIs, which could impact dollar movements and global risk sentiment. The rupee is expected to remain range bound in the near future, trading between 88.40-88.90.
Service sector remained slow
India’s services sector grew at its slowest in five months in October as competitive pressures and heavy rains in parts of the country slowed output growth, according to a monthly survey released on Thursday. The seasonally adjusted HSBC India Services PMI business activity index fell to 58.9 in October from 60.9 in September, marking the slowest pace of expansion since May.
Big fall in dollar index
Meanwhile, the dollar index, indicating the dollar’s strength against six currencies, fell 0.23 percent to 99.83. Global oil benchmark Brent crude rose 1.10 percent to $ 64.22 per barrel in futures trade. In the domestic stock markets, Sensex fell 148.14 points or 0.18 per cent to close at 83,311.01, while Nifty fell 87.95 points or 0.34 per cent to 25,509.70. According to exchange data, foreign institutional investors sold shares worth Rs 1,067.01 crore on Tuesday.