Rupee vs Dollar: Indian currency rebounds 35 paise to 81.58 against $
On Wednesday, rupee hit a fresh record low as it breached the 82-mark for the first time
Rupee on Thursday snapped a five-session losing streak as it recovered 35 paise to 81.58 against the US dollar in early trade.
Earlier on Wednesday, rupee hit a fresh record low as it breached the 82-mark for the first time. It, however, settled down by 40 paise at 81.93 -- its all-time closing low.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee opened stronger on Thursday, tracking the overnight weakness of the dollar and treasury yields. However, concerns on fiscal loosening and monetary tightening will keep the dollar supported and cap gains for the local currency.
Most Asian and emerging market peers started weak on Thursday morning and will also cap gains in the rupee.
"Investors now await the RBI's monetary policy committee's decision on Friday, with growing expectations of a 50-basis points hike due to the pressure on the rupee from hefty interest rate hikes in the US," Iyer noted.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.61 per cent to 113.28. Brent crude futures, the global oil benchmark, fell 0.46 per cent to USD 88.91 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 361.13 points or 0.64 per cent up at 56,959.41 and the broader NSE Nifty rose 133.75 points or 0.79 per cent to 16,992.35. Foreign Institutional Investors (FIIs) were net sellers in the capital markets as they offloaded shares worth Rs 2,772.49 crore on Wednesday, according to exchange data.
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