Mumbai, Jul 30: Rising for the fifth straight session, the rupee surged 26 paise to close at 95.50 against the US dollar on Thursday, tracking foreign capital inflows amid a firm trend in domestic equities.
A softening US dollar supported the local currency, but elevated crude oil prices capped its gains, according to forex traders.
At the interbank foreign exchange, the rupee opened at 95.59 and traded in the range of 95.50 to 95.75 against the greenback. The local unit ended the session at 95.50 against the US dollar, registering a gain of 26 paise from its previous closing level.
According to Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, the rupee is supported by sustained FII buying over the past few sessions, which has kept sentiment positive in both the domestic equity and currency market.
The rupee gained 6 paise to settle at 95.76 against the US dollar on Wednesday, after rising 97 paise in four back-to-back sessions since closing at 96.73 versus the US dollar on July 23.
“Traders may take cues from advance GDP, core PCE (Personal Consumption Expenditures) price index and weekly unemployment claims data from the US. USD-INR spot price is expected to move in a range of Rs 95.40 to Rs 96,” Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading down 0.05 per cent at 101.67.
Brent crude futures, the global oil benchmark, were trading marginally lower by 0.12 per cent at USD 90.63 per barrel.
Analysts said crude prices reclaimed USD 90-per-barrel levels amid renewed fear of disruptions in global energy supplies, as fresh flare-ups between the US and Iran, after a brief calm, shattered hopes of an end to the five-month conflict in West Asia.
“Crude oil prices took a breather after their recent rally towards the USD 90 per barrel mark, helping the rupee remain stable despite lingering geopolitical uncertainties. Going forward, the market will closely monitor the US Dollar Index, developments surrounding the US-Iran situation, inflation trends, and global crude oil prices for further direction. Technically, the rupee is expected to trade in the 95.24-96.25 range over the short term,” Trivedi said.
The US military said on Thursday that they have struck “dozens” of targets belonging to Iran’s Revolutionary Guard Corps in “a heavy wave of strikes against Iran” conducted in response to an earlier Iranian missile attack on a US base in Jordan.
On the domestic equity market front, the Sensex climbed 273.55 points, or 0.35 per cent, to settle at 77,928.15, while the Nifty went up 66.95 points, or 0.28 per cent, to 24,317.15.
Foreign Institutional Investors purchased equities worth Rs 3,623.51 crore on a net basis on Thursday, according to exchange data. (PTI)
