Rupee gains 5 paise to touch 79.47 / $

15 Sep 2022 , 02:43 PM

Early on Thursday, the rupee traded in a narrow range as the support from strong local stocks was countered by a solid dollar and worries of a hawkish US Federal Reserve. The local unit started off at 79.53 versus the dollar on the interbank foreign exchange, touching 79.47 in the first trades, gaining 5 paise over its previous finish.

On Wednesday, the rupee lost 35 paise to end the day at 79.52 versus the US dollar. The dollar index, which compares the value of the dollar to a basket of six other currencies, increased 0.06 % to 109.72. The international oil benchmark, Brent crude futures, dropped 0.11 % to USD 94 per barrel.

The 30-share BSE Sensex, which measures domestic equities, was up 275.51 points, or 0.46 percent, at 60,622.48. The larger NSE Nifty index also increased, rising 36.15 points, or 0.2%, to 18,039.90. According to preliminary statistics, foreign institutional investors (FIIs) were net sellers in the capital markets on Wednesday, selling shares worth Rs1,397.51 crore.

“The rupee will not appreciate substantially against the dollar as long as Asian currencies remain on the lower side of the USD exchange rate spectrum. As the market prepares for the FED to raise interest rates by 75 basis points, the projected range for the day is between 79.30 to 79.80 “Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors stated.

Even though export data were also marginally revised upward, India’s trade imbalance widened. The country’s focus continues to be the trade imbalance, according to Bhansali. According to figures released on Wednesday by the commerce ministry, India’s exports climbed marginally by 1.62 % to USD 33.92 billion, while the country’s trade imbalance more than doubled to USD 27.98 billion in August as a result of higher crude oil imports. According to the updated figures, imports increased by 37.28% to USD 61.9 billion in August of this year.

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