In a positive development, the Indian rupee demonstrated its strength for the second consecutive trading session, marking an impressive 28 paise appreciation against the US dollar. This notable upswing, the most significant single-day increase in nearly two months, led the rupee to conclude the day's trading at 82.71 (provisional exchange rate) against the US dollar on Wednesday.
Foreign exchange traders attributed this upturn to two main factors: robust inflows driven by Initial Public Offerings (IPOs) and a positive sentiment prevailing in the domestic markets. Furthermore, the decline in crude oil prices lent additional support to the Indian currency.
It is important to note, however, that substantial outflows from Foreign Institutional Investors (FIIs) and the resilience of the US dollar acted as limiting factors, preventing the rupee's gains from soaring too high.
Commencing its journey at 83.02 against the US dollar in the interbank foreign exchange market, the rupee navigated through a range of 82.68 to 83.02 throughout the trading day. Ultimately, the rupee concluded the session with a notable increase of 28 paise, settling at 82.71 (provisional exchange rate) compared to the previous close. Notably, the Indian rupee's most substantial single-day surge of 35 paise was recorded on June 16 earlier in the same year.
In the previous trading session, the rupee had rebounded from its all-time low levels, securing a gain of 14 paise to close at 82.99 against the US dollar.
Meanwhile, the dollar index, a metric gauging the strength of the US dollar against a basket of six major currencies, observed a rise of 0.34 percent, reaching 103.91.
In the global oil markets, Brent crude futures, the benchmark for global oil prices, faced a decline of 1.11 percent, settling at USD 83.10 per barrel.
Within the domestic equity markets, the BSE Sensex concluded with a gain of 213.27 points, equivalent to a 0.33 percent increase, reaching 65,433.30. Correspondingly, the broader NSE Nifty experienced an advancement of 47.55 points or 0.25 percent, concluding at 19,444.00.
Adding to the financial landscape, data from exchanges revealed that Foreign Institutional Investors (FIIs) were net sellers in the capital markets on the preceding Tuesday, having divested shares worth Rs. 495.17 crore.
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