In early trade on Wednesday, the rupee strengthened by 17 paise to 81.55 against the US dollar due to widespread dollar weakness and an uptick in domestic equities. The domestic unit started out at the interbank foreign exchange at 81.63 versus the dollar before moving up to touch 81.55 and recording a gain of 17 paise from its previous closing.
The rupee lost 4 paise on Tuesday to end the day at 81.72 against the US dollar.
Forex traders predicted that investors would pay close attention to Chairman of the US Federal Reserve Jerome Powell’s speech and the publication of significant domestic macroeconomic data for additional clues.
“The market is anticipating today’s statement by Fed Chair Powell. He is anticipated to indicate a halt in rate increases but will likely reject expectations of a change in course “In a note, IFA Global Research Academy stated.
Later in the day, the domestic Q2 FY’23 GDP print, the April-October fiscal deficit, and the October core sector data are all expected to be released.
The dollar index, which measures the strength of the dollar against a basket of six different currencies, decreased by 0.15 percent to 106.65.
The benchmark for world oil, Brent crude futures, increased 1.14 percent to USD 83.98 per barrel.
The 30-share BSE Sensex was trading 111.56 points, or 0.18 percent, higher at 62,793.40 points on the domestic equity market. The larger NSE Nifty index also increased, rising 36.30 points, or 0.19 percent, to 18,654.35 points.
According to exchange data, foreign institutional investors (FIIs) were net purchasers on Tuesday, purchasing shares worth Rs 1,241.57 crore.
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