Rupee recovers 6 paise to end at 83.22 against US dollar on domestic equities support
Local currency suffers from selling pressure from international equities investors
On the strength of encouraging signs from the domestic equities markets, the rupee staged a recovery on Wednesday after two days of precipitous declines to end 6 paise higher at 83.22 (provisional) against the US dollar.
However, the local currency suffered from selling pressure from international equities investors despite strong levels of the US dollar and rising crude oil prices, according to FX brokers.
The domestic currency against the US dollar began at 83.23 on the interbank foreign exchange and moved in a constrained range from 83.18 to 83.24. It ultimately reached 83.22 (provisional), up 6 paise from its previous level.
In the previous two sessions, the rupee fell 34 paise. It lost 19 paise the day before, and on Tuesday it closed 15 paise lower, at 83.28 against the dollar.
The surging dollar and record-high US Treasury yields were blamed for the rupee's downward trend. In addition, the US dollar rose to a ten-month high after a Federal Reserve policymaker suggested that the cycle of interest rate increases would be prolonged.
The dollar index, which measures the strength of the dollar against a basket of six different currencies, increased 0.05% to 106.28.
The benchmark for world oil, Brent crude futures, was trading 0.87 percent higher at USD 94.78 per barrel.
The BSE Sensex closed at 66,118.69, up 173.22 points, or 0.26 percent, on the domestic equity market front. The NSE Nifty, a more inclusive index, rose 51.75 points, or 0.26 percent, to close at 19,716.45.
According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs 693.47 crore on Tuesday, making them net sellers in the capital market.
