The rupee edged up by 6 paise to 90.85 against the US dollar during early exchanges on Thursday, buoyed by a softening greenback and a steady flow of foreign investment.
The local unit found its feet as domestic equity markets opened in the green, though seasoned forex traders noted that rising global oil prices and lingering geopolitical jitters managed to keep any significant rally in check. At the interbank foreign exchange, the rupee started the day at 90.86 before settling at 90.85— a modest improvement on Wednesday’s close of 90.91.
Market analysts, including Anil Kumar Bhansali of Finrex Treasury Advisors, pointed out that the rupee is currently hitting a bit of a ceiling. While a "risk-on" mood and foreign institutional investors (FIIs) offloading dollars have helped, the Reserve Bank of India appears to be active near the 91.00 mark, preventing the currency from slipping further.
On the global stage, the dollar index — which measures the greenback against a basket of six major currencies — dipped by 0.13 per cent to 97.57. Meanwhile, Brent crude, the international benchmark, saw a slight uptick of 0.21 per cent to reach $71.00 per barrel.
The domestic mood remained upbeat as the Sensex climbed over 300 points in early trade, following a busy Wednesday where foreign investors pumped nearly ₹2,991.64 crore into Indian equities.
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