Rupee rises 2 paise to 83.35 against US dollar in early trade

Forex traders said investors remained on the sidelines ahead of the Reserve Bank of India's monetary policy decision later this week

December 06, 2023 10:54 am | Updated 10:54 am IST - New Delhi

The rupee appreciated 2 paise to 83.35 against the US dollar in early trade on Wednesday, amid a bullish trend in domestic equities and sustained foreign fund inflows.

Forex traders said investors remained on the sidelines ahead of the Reserve Bank of India's monetary policy decision later this week.

At the interbank foreign exchange, the rupee opened 2 paise higher at 83.35 against the dollar as domestic benchmark indices touched new lifetime peaks.

On Tuesday, the rupee settled at 83.37 against the dollar.

“The RBI’s policy, commencing on Tuesday with a decision due on Friday, will be closely monitored,” CR Forex Advisors MD Amit Pabari said.

The Reserve Bank is likely to maintain the status quo on the short-term interest rate in its monetary policy review.

RBI Governor Shaktikanta Das-headed Monetary Policy Committee (MPC) is scheduled to begin its three-day deliberations on December 6. Das would unveil the decision of the six-member MPC on December 8.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.11 per cent lower at 103.93.

Brent crude futures, the global oil benchmark, advanced 0.12 per cent to USD 77.29 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 269.23 points or 0.39 per cent higher at 69,565.25 points. The broader NSE Nifty jumped 79.50 points or 0.38 per cent to 20,934.60 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday as they purchased shares worth Rs 5,223.51 crore, according to exchange data.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.