Mumbai, August 26 (PTI) The rupee parried some of its early gains to settle 3 paise higher at 74.30 against the US dollar on Wednesday backed by positive domestic equities and sustained influx of foreign funds.
In the interbank market, the domestic unit opened slightly at 74.34 against Tuesday’s close at 74.33. The unit finally finished at 74.30 against greenback, higher by 3 paise compared to its previous closure.
“The Indian rupee ended flat Wednesday against the US dollar for the second straight day as markets became cautious ahead of the Fed speech by Jerome Powell tomorrow,” said Sriram Iyer, Senior Research Analyst, Reliance Securities.
Iyer said market sentiment remains optimal supported by optimism surrounding the US-China trade agreement and foreign fund inflows into domestic stock markets.
However, appreciation was limited due to likely intervention by the central bank in the spot and forward market to counter the impact of dollar portfolio inflows, he said.
Meanwhile, the dollar index, which measures the strength of greenbacks against a six-currency basket, rose 0.06 percent to 93.07. Brent crude futures, the global oil benchmark, rose 0.02 percent to $ 45.87 per share. Barrel.
Foreign institutional investors were net buyers in the capital market when they bought shares worth Rs 1,481.20 on Tuesday, according to preliminary exchange data.
The 30-share BSE benchmark Sensex rose 230.04 points or 0.59 percent to close above the 39,000 mark for the first time in six months. NSE Nifty advanced 77.35 points or 0.67 percent to close at 11,549.60.
“The rupee market remained cautious ahead of Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole retreat on Thursday and Friday, with the central bank expected to comment on future US inflation and monetary policy,” said Jateen Trivedi, Senior Research Analyst (Commodity & Currency). at LKP Securities.
According to Devarsh Vakil, Vice President Retail Research, HDFC Securities, in the future, dollar directional development will be determined by Powell’s remarks at Jackson Hole.
On Tuesday, the RBI resumed “operation twist” to hold bond yields. These measures have kept Indian real interest rate dividends at negative levels, which will also hold back the rupee, ”he said. PTI DRR MR
Disclaimer: – This story is not edited by Outlook staff and is automatically generated from news agency feeds. Source: PTI