Rupee rises 11 paise to settle at 83.48 against US dollar

Mumbai, Jun 12 (PTI) Rupee recovered from lower level and appreciated 11 paise to close at 83.48 against the US dollar on Wednesday amid positive domestic markets with benchmark Nifty touching a fresh all-time high.

According to forex traders, the domestic unit saw a sharp recovery after easing dollar index as the US data showed lower-than-expected inflation in May. Also, the domestic data showing a downward trend in inflation numbers boosted the local currency.

At the interbank foreign exchange market, the local unit opened at 83.56. During the trading session, the rupee touched an intraday high of 83.48 and a low of 83.58. It finally settled for the day at 83.48 against the greenback, registering an increase of 11 paise from its previous closing level.

On Tuesday, the rupee settled for the day lower by 9 paise at 83.59 against the US dollar.

The Indian rupee appreciated on positive domestic markets. Nifty touched a fresh all-time high. However, a positive US dollar and surge in crude oil prices capped sharp gains, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas.

According to Dilip Parmar, Senior Research Analyst (Currency), there could be a slow and steady depreciation in the rupee amid dollar demand outpacing supply. "From the level front, spot USD-INR has support around 83.30 and resistance at 83.80." Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 103.87, lower by 1.26 per cent. The US dollar gained on expectations of further delay in first interest rate cut by the US Federal Reserve.

Brent crude futures, the global oil benchmark, rose 0.59 per cent to USD 82.40 per barrel.

On the domestic equity market, the 30-share BSE Sensex advanced 149.98 points, or 0.20 per cent, to close at 76,606.57 points. The broader NSE Nifty settled 58.10 points, or 0.25 per cent, higher to settle at an all-time high of 23,322.95 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Wednesday, purchasing shares worth Rs 426.63 crore, according to exchange data.

Retail inflation continued its downward slide to reach a one-year low of 4.75 per cent in May due to a marginal decline of prices in the food basket and remained within the Reserve Bank's comfort zone of below 6 per cent, according to government data released on Wednesday.

However, India's industrial production growth slipped to 3-month low of 5 per cent in April 2024, mainly due to poor show by the manufacturing sector, though mining and power segments performed well, according to official data. PTI DRR HVA