Rupee vs Dollar: Domestic currency rebounds 17 paise to settle at 83.17 against American dollar

Currency market update: The rupee (INR) traded and settled at 83.17 (provisional) against the US dollar on Thursday, December 28. Amid a weak American currency overseas and a rally in domestic equity markets, the local unit registered a gain of seventeen paise for the day from its previous close. Throughout the session, the domestic currency moved within a range of 83.16 - 83.34.

The inflow of foreign funds and a downward trend in crude oil prices also supported the Indian currency, said PTI citing forex traders.

At the interbank foreign exchange, the rupee began the day at 83.33 against the dollar and fell to as low as 83.34 during the session before settling at 83.17 (provisional) against the greenback for the day.

The rupee appreciated on the weak US dollar and a surge in domestic markets, said PTI citing Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas. Choudhary said the rupee is likely to trade with a slight positive bias on fresh foreign inflows and an extended decline in the US dollar.

Also, "traders may take cues from weekly unemployment claims data from the US. USD-INR spot price is expected to trade in a range of Rs 82.90 to Rs 83.50", he added.

The dollar index — which measures the value of the American currency against six peers other than the rupee — was last seen trading 0.28 lower at 100.37

Global oil benchmark Brent crude futures slipped 0.64 per cent to USD 79.14 per barrel at the last count.

In contrast to this, domestic equity benchmarks Sensex and Nifty50 advanced by 0.52 - 0.57 per cent. The 30-share benchmark BSE Sensex jumped 371.95 points for the day to settle at an all-time high of 72,410.38 points while the broader NSE Nifty soared 123.95 points to settle at 21,778.70 points.

On Wednesday, December 27, the rupee had settled 15 paise lower at 83.34 against the American dollar, a day after closing at a loss of 3 paise. The rupee had lost 18 paise in the previous two sessions.

According to exchange data, foreign institutional investors (FIIs) bought equities worth Rs 2,926.05 crore on Wednesday.

With inputs from PTI