The rupee rose along with a rally in the domestic equity market and persistent foreign fund inflows. An unstable US dollar against major global currencies also helped the rupee.
The Indian rupee opened 3 paisa higher at 75.61 per dollar on June 24 against the previous day’s close of 75.64.
The rupee rose along with a rally in the domestic equity market and persistent foreign fund inflows. An unstable US dollar against major global currencies also helped the rupee.
As per Reuters, the dollar was under pressure on Wednesday, after upbeat data in Europe boosted the euro and helped stoke hopes for a global economic recovery, underpinning investor appetite for riskier currencies.
Oil's weakness and foreign capital inflows are also helping rupee.
Oil futures dropped on Wednesday, extending losses from the previous day, after US crude stockpiles grew more than expected, adding to worries about oversupply, reported Reuters.
Foreign portfolio investors (FPIs) have been bullish on Indian equities so far in June.
As per data available with NSDL, FPIs have pumped in Rs 20,242 crore in the Indian market in June so far. They have invested Rs 22,194 crore in equity but took out Rs 3,167 crore from the debt market. Debt-VRR and Hybrid segments have seen FPI inflow of Rs 1,157 crore and Rs 57 crore, respectively, in June so far.
FPIs bought shares worth Rs 168.96 crore, while domestic institutional investors (DIIs), too, bought shares worth Rs 454.48 crore in the Indian equity market on June 23, provisional data available on the NSE showed.
"Today, the Indian rupee opened flat. We are expecting appreciation in rupee supported by the record increase in forex reserve, it increased by $5.92 billion to touch lifetime high of $507.644 billion. Weakness in the dollar is also supportive of USDINR. We recommend traders to sell in USDINR around 75.70 to 75.80, with the stop loss of 76 and for the target of 75.20 levels. We expect appreciation in rupee," said Anuj Gupta, DVP–Commodities & Currencies Research, Angel Broking.WEBINAR: Tune in to find out how term insurance can provide risk protection during tough times. Register Now!
