Rupee Gains 17 Paise to Close at 90.61 Against US Dollar
The Indian rupee rose by 17 paise on Thursday to close at 90.61 (provisional) against the US dollar. This growth was driven by a boost in investor confidence following new foreign fund investments.
Market Performance and Daily Trends
Forex traders noted that while foreign fund inflows were modest, they helped stabilize market sentiment. Additionally, the Reserve Bank of India (RBI) has worked to ensure there is plenty of cash flow within the banking system.
During the day’s trading at the interbank foreign exchange market:
- Opening: The rupee started at 90.55 against the dollar.
- Highs and Lows: It reached a high of 90.40 and a low of 90.65.
- Closing: The currency ended at 90.61, marking a 17-paise gain compared to Wednesday’s closing rate of 90.78.
Impact of the India-US Trade Deal
While markets originally reacted well to the India-US trade deal, some concerns have surfaced following a fact sheet released by the White House. The document outlines that India will lower or remove tariffs on US industrial goods and various agricultural products.
Commerce Secretary Rajesh Agrawal addressed these concerns on Wednesday. He stated that India remains focused on protecting sensitive sectors during trade negotiations. He confirmed that these key areas are protected under the current interim agreement. Both nations are now working to turn the joint statement into a formal legal agreement, which is expected to be signed by the end of March.
Global and Domestic Economic Indicators
Several other factors influenced the market on Thursday:
- The US Dollar Index: A measure of the dollar against six major currencies dropped slightly by 0.04% to 96.79.
- Oil Prices: Brent crude, the global benchmark, fell by 0.29% to USD 69.20 per barrel.
- Stock Market: The domestic equity market saw a decline. The Sensex fell by 558.72 points to 83,674.92, and the Nifty dropped 146.65 points to 25,807.20.
- Foreign Investment: Data shows that foreign institutional investors bought shares worth Rs 943.81 crore on Wednesday.
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