Mumbai, July 12: The Indian rupee started the day on a positive note, strengthening by 16 paise to reach 82.25 against the US dollar. This upward movement was attributed to the weakness of the American currency in the global market and steady foreign fund inflows, which supported investor sentiment. Forex traders highlighted that the surge in crude oil prices, however, limited the sharp gains for the local unit.
During the early trade on Wednesday, at the interbank foreign exchange, the domestic unit opened at 82.29 against the American currency. It then reached a high of 82.25, marking a rise of 16 paise compared to its previous close. The weakening of the US dollar in overseas markets provided a favorable environment for the rupee’s appreciation. Additionally, the consistent inflow of foreign funds further bolstered the sentiment surrounding the Indian currency.
Nevertheless, the surge in crude oil prices acted as a dampener for the rupee’s gains. The increase in oil prices has the potential to impact India’s import bill and current account deficit, which in turn can put pressure on the rupee’s value. Forex traders closely monitored this development to assess the overall impact on the currency markets and investor confidence.
Overall, the early trade session witnessed the rupee’s resilience against the US dollar, driven by external factors and positive market sentiment. However, the influence of crude oil prices remains a crucial factor to watch as it could influence the rupee’s future movements in the currency market. Market participants will keenly observe these dynamics to make informed decisions and navigate the evolving landscape of foreign exchange trading.
