Finance1 min read

Rupee rises 14 paise to 94.61 against Us dollar in early trade

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In short

Domestic equities posted notable advances, with both the Sensex and Nifty logging substantial gains during early trading hours. Foreign Institutional Investors reinforced this bullish trend by maintaining a three-day buying streak with multi-crore equity purchases. Meanwhile, external market pressures softened as Brent crude futures slipped to trade at USD 103.09 per barrel. The retreat of the dollar index to 101.17 provided additional breathing room for emerging market assets.

Key points

  • Strong domestic equity performance and consistent institutional inflows continue to provi…: Strong domestic equity performance and consistent institutional inflows continue to provide immediate stability to local currency markets.
  • Weakening US Treasury yields and a softening dollar index reflect market anticipation sur…: Weakening US Treasury yields and a softening dollar index reflect market anticipation surrounding the US midterm election results.
  • Moderating global crude oil prices have helped curb external headwinds despite ongoing ge…: Moderating global crude oil prices have helped curb external headwinds despite ongoing geopolitical uncertainties around the world.

Sources checked by our analysis pipeline: 1

Buying momentum in the domestic equities market also favoured the Indian currency even as investors awaited the outcome of the US midterm elections, according to forex traders.

In the interbank foreign exchange market, the rupee opened at 94.61 and went up to 94.50 before paring some gains to trade at 94.61 against the greenback, up 14 paise from its previous session's closing level.

The Indian currency rose 9 paise to close at 94.75 against the US dollar on Tuesday.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 101.17, lower by 0.54 per cent. Also, US Treasury yields declined amid expectations of a favourable outcome for the Democratic Party in the midterm elections.

Brent crude, the global oil benchmark, was trading lower by 0.49 per cent at USD 103.09 per barrel in futures trade even as geopolitical uncertainties continued.

On the domestic equity market front, Sensex surged 435.10 points or 0.57 per cent to 77,352.95 in early trade, while Nifty climbed 115.90 points or 0.49 per cent to 23,925.10. Both the…

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