Mumbai, Sep 25 (PTI) The rupee appreciated 5 paise to close at 83.58 against the US dollar on Wednesday, tracking a positive trend in domestic equities and a weak greenback against major currencies overseas.
At the interbank foreign exchange, the local unit opened slightly strong at 83.59 against the American currency. During the session, it surged 12 paise to touch 83.51.
However, the domestic currency gave up most of its gains to settle at 83.58, a rise of 5 paise against its previous close.
On Tuesday, the rupee fell 9 paise to close at 83.63 against the American currency.
“This strength is likely supported by a weak dollar index and continued positive sentiment in Indian markets,” Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said.
On the domestic equity markets front, the Sensex climbed 255.83 points to settle at an all-time high of 85,169.87, while Nifty rallied 63.75 points to hit a record of 26,004.15.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose marginally by 0.05 per cent to 100.52.
“Indian rupee edged higher today on weak US Dollar and improved risk sentiments amid China’s economic stimulus. S&P Global projected India’s 2024-25 GDP forecast at 6.5 per cent, unchanged from its previous projection.
“The US Dollar also weakened on the back of disappointing economic data from the US and expectations of further rate cuts by the US Federal Reserve,” Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas, said.
Brent crude, the international benchmark, was down 0.25 per cent at 74.98 in futures trade.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday, offloading shares worth Rs 973.94 crore, according to exchange data.
Meanwhile, the Asian Development Bank (ADB) on Wednesday retained India’s growth forecast for the current fiscal at 7 per cent and said that the economy is likely to accelerate in the coming quarters on improved farm output and higher Government spending. PTI TRB BAL BAL BAL
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