Rupee Recovers 11 Paise to 90.12 Against US Dollar in Early Trade
The Indian rupee recovered 11 paise to trade at 90.12 against the US dollar in early Wednesday deals, bouncing back from previous session's decline. The currency opened at 90.26 and touched a session high of 89.94, supported by lower crude oil prices and weakening dollar overseas. Domestic equities showed resilience with Sensex gaining 34.81 points and Nifty rising 14.15 points, though FIIs continued selling with ₹1,499.81 crore outflows on Tuesday.
*this image is generated using AI for illustrative purposes only.
The Indian rupee demonstrated resilience in early Wednesday trading, gaining 11 paise to reach 90.12 against the US dollar. This recovery came after the currency had declined 6 paise in the previous session to close at 90.23, marking a notable turnaround supported by favorable global market conditions.
Currency Performance Details
The rupee's trading session showed significant volatility with the currency opening at 90.26 before strengthening considerably during early deals. The following table captures the key trading levels:
| Parameter: | Value |
|---|---|
| Opening Level: | 90.26 |
| Session High: | 89.94 |
| Current Trading: | 90.12 |
| Previous Close: | 90.23 |
| Daily Gain: | 11 paise |
Global Market Factors
Several international factors contributed to the rupee's recovery. The dollar index, which measures the greenback's strength against a basket of six currencies, was trading 0.01 per cent lower at 98.90, indicating weakness in the American currency. Additionally, Brent crude, the global oil benchmark, was trading 0.47 per cent lower at USD 65.17 per barrel in futures trade, providing relief to the import-dependent Indian economy.
Domestic Equity Market Performance
Domestic equity markets displayed positive momentum alongside the currency recovery. The benchmark indices showed the following performance:
| Index: | Points Gained | Current Level |
|---|---|---|
| Sensex: | 34.81 | 83,662.50 |
| Nifty: | 14.15 | 25,746.90 |
Despite the positive market sentiment, foreign institutional investors continued their selling pressure, offloading equities worth ₹1,499.81 crore on Tuesday according to exchange data.
Market Outlook Factors
Forex analysts noted that traders remained cautious while monitoring geopolitical developments and awaiting US inflation numbers. These upcoming economic indicators are expected to provide crucial cues for the Federal Reserve's future policy decisions, which could significantly impact currency movements and global market sentiment in the coming sessions.
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