Rupee vs Dollar: Domestic currency jumps 10 paise to settle at 83.03 against American dollar

Currency market update: The rupee (INR) recovered early losses to end higher for a sixth straight day and settled at 83.03 (provisional) against the US dollar on Wednesday, January 10. Tracking a firm trend in equity markets and easing crude prices, the local currency registered a jump of ten paise for the day from its previous close. Throughout the session, the domestic currency oscillated within a range of 83.18 - 82.97.

A weak greenback overseas and expectations of favourable global and domestic macroeconomic data also boosted the domestic currency, said PTI citing forex traders.

At the interbank foreign exchange, the rupee began the day at 83.13 against the dollar and fell to as low as 83.18 during the session before settling at 83.03 (provisional) against the greenback for the day. The domestic currency touched the peak of 83.97 against the US dollar during intra-day deals.

The Indian rupee appreciated following recovery in the domestic markets and a soft US dollar. A slight decline in crude oil prices also supported the rupee, said PTI citing Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas.

The investor sentiment was boosted after the World Bank retained India's growth rate projection at 6.3 per cent for FY24 and 6.4 per cent for the next fiscal, he said as per PTI reported.

According to PTI, "USD-INR spot price is expected to trade in a range of Rs 82.70 to Rs 83.40," Choudhary added.

The dollar index — which measures the value of the American currency against six peers other than the rupee — was last seen trading 0.16 lower at 102.11.

Global oil benchmark Brent crude futures declined 0.67 per cent to USD 77.07 per barrel at the last count.

In contrast to this, domestic equity benchmarks Nifty50 and Sensex climbed by 0.34 per cent - 0.38 per cent. The 30-share benchmark BSE Sensex rose 271.50 points for the day to settle at 71,657.71 points while the broader NSE Nifty advanced 73.85 points to settle at 21,618.70 points.

The rupee gained as buyers became "more assertive within the range-bound movements" said PTI citing Jateen Trivedi, VP Research Analyst, LKP Securities.

"The overall trend remains sideways, and rupee movements are influenced by range-bound volatility. The upcoming US CPI data, scheduled for tomorrow evening, is expected to play a crucial role in determining the trend of the US dollar, with potential effects on the rupee as well," Trivedi added.

According to exchange data, foreign institutional investors (FIIs) sold shares worth Rs 1,721.35 crore on Wednesday.

With inputs from PTI