Rupee Experiences Range-Bound Trading in Morning Session
On Thursday, September 12, 2024, the Indian rupee witnessed range-bound trading in the morning session, appreciating by 2 paise to close at 83.97 against the U.S. dollar. This movement was driven by a positive trend in domestic equities and foreign fund inflows
Forex traders attributed the rupee's stability to the active intervention of the Reserve Bank of India (RBI). The local currency moved within a narrow range, opening at 83.97 against the American currency and registering a slight rise over its previous close
The rupee had settled 1 paisa lower at 83.99 against the U.S. dollar on Wednesday. Analysts believe that the central bank's steady absorption of inflows has been a key factor in maintaining the rupee's range-bound movement
In the near term, the rupee is expected to trade within a narrow band of 83.80 to 84.05, while the medium-term outlook slightly broadens the range to 83.70 to 84.05. The stability in the U.S. CPI data, which came in lower than expectations at 2.5% year-on-year, has helped maintain the dollar index at its current levels
The dollar index, which gauges the greenback's strength against a basket of six currencies, was up 0.07% to 101.75 points. Brent crude, the international benchmark, was trading higher by 0.58% to $71.02 per barrel in futures trade
On the domestic equity market front, the 30-share BSE Sensex appreciated 289.66 points, or 0.36%, to 81,812.82, while the Nifty was up 101.55 points, or 0.41%, to 25,020.00 points. Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, purchasing shares worth ₹1,755.00 crore
The range-bound movement of the rupee reflects the overall stability in the currency market, despite the ongoing global economic uncertainties. The RBI's active intervention and the positive sentiment in the domestic equity market have contributed to the rupee's resilience in the face of external pressures
As the day progresses, market participants will closely monitor any further developments that may impact the rupee's trajectory. The stability in the currency market is crucial for maintaining investor confidence and supporting the growth of the Indian economy.
