Indian Rupee Gains 6 Paise Against US Dollar

20 Jan 2024 , 10:40 AM

The Indian rupee strengthened by 6 paise to close at 83.07 against the US dollar on Friday, driven by robust buying in the domestic equity markets and a weakened American currency internationally.

However, the substantial gain in the domestic currency was curtailed by rising crude oil prices and foreign capital outflows, according to forex traders. The interbank foreign exchange saw the domestic currency open at 83.15 and fluctuate between 83.05 and 83.16 against the greenback.

Ultimately, the local unit settled at 83.07 against the dollar, marking a 6-paise gain from its previous close on Thursday when it settled at 83.13 against the US dollar.

The dollar index, measuring the greenback against a basket of six currencies, traded 0.17% lower at 103.13 on Friday. The lower dollar index was attributed to steady growth in the US economy, dispelling hopes in financial markets for an immediate interest rate cut by the Federal Reserve.

Brent crude futures, the global oil benchmark, increased by 0.68% to reach $79.64 per barrel. On the domestic equity market front, the Sensex surged 496.37 points (0.70%) to settle at 71,683.23 points, while the Nifty climbed 160.15 points (0.75%) to 21,622.40 points.

Foreign institutional investors were net sellers in the equity market on Friday, selling shares worth Rs 3,689.68 crore, as per exchange data.