The rupee strengthened sharply on Wednesday, appreciating 31 paise to close at 89.87 (provisional) against the US dollar, supported by possible intervention from the Reserve Bank of India (RBI) and a decline
in global crude oil prices.
In the interbank foreign exchange market, the domestic currency opened at 90.20 and moved between a high of 89.75 and a low of 90.23 during the session before settling at 89.87, marking a 31-paise gain from its previous close. The rupee had already snapped a four-day losing streak on Tuesday, when it ended 12 paise stronger at 90.18 against the dollar.
Market participants said the RBI’s presence was evident near the 90.23 level. “The rupee rose… as RBI sold dollars at 90.23 levels, signalling that one-sided movement of currencies are not what they want from the market. It is difficult to take a call on rupee’s direction at the moment but 89.50-90.50 can be broadly considered as the range for January,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
Globally, the dollar index, which measures the greenback’s strength against a basket of six major currencies, was trading 0.07% higher at 98.65. Meanwhile, Brent crude, the international oil benchmark, slipped 0.99% to USD 60.10 per barrel in futures trade, offering support to the domestic currency.
On the equity front, domestic markets closed lower, with the benchmark Sensex declining 102.20 points to end at 84,961.14, while the Nifty slipped 37.95 points to 26,140.75. Foreign institutional investors remained net sellers, offloading equities worth ₹107.63 crore on Tuesday, as per exchange data.
