The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.10% to 93.89.
The rupee on Thursday closed 11 paise higher at 74.92 (provisional) against the US dollar despite heavy selling in the domestic equity market as easing crude oil prices gave some support to the local currency.
In the interbank forex market, the domestic unit opened at 74.92 against the greenback and saw intra-day highs of 74.76 and 74.94 lows during the day’s trade. It finally closed at 74.92 per dollar.
On Wednesday, the rupee had closed 7 paise lower at 75.03 against the US currency.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.10% to 93.89.
Dilip Parmar said, “Indian rupee appreciated on anticipation of better inflows from high profile IPO and low crude oil prices. The market is witnessing significant dollar inflows from the IPO, while RBI on Thursday saw a significant reduction in crude oil prices. Still appreciating Rs. Analyst, HDFC Securities.
If crude oil prices continue to fall in the next two weeks along with FPI inflows, the rupee will strengthen further.
“USD/INR is finding near term support near 74.70, while resistance continues at 75.20,” Mr. Parmar said.
Foreign institutional investors were net sellers in the capital markets on Wednesday as they sold shares worth 1,913.36 crore, according to exchange data.
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