New Delhi: The rupee appreciated by 9 paise to close at 82.49 against the US dollar on Wednesday as a positive trend in domestic equities and easing crude oil prices supported investor sentiments.
Weakness in the US dollar in the global markets and gains in Asian currencies following positive Chinese macro data also bolstered the local unit.
At the interbank foreign exchange market, the local unit opened at 82.48 against the American currency and touched a high of 82.36 in the day trade.
It finally settled at 82.49 against the greenback, registering a gain of 9 paise over its previous close of 82.58.
The rupee traded strong as the dollar faced hurdles near 105 level. Moreover, weakness in crude oil prices also supported the local unit, with WTI taking resistance at USD 77 per barrel, said Jateen Trivedi, VP Research Analyst at LKP Securities.
“Major strength was seen from the positive trend in capital markets, which led to gains for the rupee. US PMI data later in the evening can give further cues to dollars and other currencies,” Trivedi said.
The rupee appreciated on upbeat macroeconomic data from India. India’s manufacturing PMI expanded to 55.3 in February topping forecast of 54.3, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.
“Positive domestic markets and a soft dollar also supported the rupee. Dollar declined amid improved risk sentiments in Asian and European markets. However, sustained FII outflows, disappointing Q3 GDP data and rising fiscal deficit capped sharp gains,” Choudhary added.
Choudhary noted that rupee is likely to trade with a slight negative bias on concerns over slowdown in India’s GDP growth rate and expectations that dollar may recover on hawkish US Fed expectations.
“However, a rise in risk appetite in global markets may support the rupee at lower levels. Any intervention by the Reserve Bank of India may also support rupee,” Choudhary said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.39 per cent to 104.45.
Global oil benchmark Brent crude futures declined 0.41 per cent to USD 83.11 per barrel.
On the domestic equity market front, the 30-share BSE Sensex advanced 448.96 points or 0.76 per cent to end at 59,411.08, while the broader NSE Nifty rose 146.95 points or 0.85 per cent to 17,450.90.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 424.88 crore, according to exchange data.
PTI