Re recovers 21ps to 83.12/$
Firm trend in domestic equity markets and risk-on sentiment also supported the local unit
Mumbai: The rupee appreciated 21 paise to close at 83.12 (provisional) against the US dollar on Wednesday as the American currency retreated from its elevated levels after the US inflation came lower than expected. A firm trend in domestic equity markets and risk-on sentiment also supported the local unit, forex traders said.
The rupee gained as the American currency weakened after US Inflation eased to its lowest level since September 2021, they added. At the interbank foreign exchange, the rupee opened at 83.03 and finally settled at 83.12 against the greenback, registering a gain of 21 paise from its previous close. During the day, the local unit witnessed an intraday high of 83.01 and a low of 83.19. On Monday, the rupee declined by 5 paise to settle at its all-time low of 83.33 against the American currency.
The forex markets were closed on Tuesday on account of Diwali-Balipratipada. The US CPI coming lower than expected and prior data weighed heavily on the US Dollar Index that crashed nearly 1.50 per cent on Tuesday, as the ten-year US yields slumped 4 per cent to below 4.50 per cent mark, said Praveen Singh – Associate VP, Fundamental Currencies and Commodities, Sharekhan by BNP Paribas.
