Image Source : PIXABAY Indian rupee
The rupee ended its seven-day winning streak, declining by 4 paise to reach 83.05 against the US dollar in early Friday trading. The decline was attributed to foreign investors withdrawing funds amid a significant rise in crude oil prices.
Despite a weak US dollar and a buoyant equity market, overall market sentiment was affected by US data revealing higher-than-expected inflation in December. This development dashed hopes of an imminent interest rate cut by the Federal Reserve, according to forex analysts. Investors are closely monitoring domestic inflation figures set to be released later in the day.
At the interbank foreign exchange, the rupee opened weak at 83.08, slipping further to 83.10 against the dollar. Ultimately, it settled at 83.05, marking a 4 paise loss from the previous close. Thursday saw the rupee ending 2 paise higher at 83.01, marking the seventh consecutive session of gains since January 2 when it was at 83.32 against the dollar.
The dollar index, measuring the dollar against six currencies, was down 0.07 per cent at 101.95 on Friday. Brent crude futures, the global oil benchmark, surged by 1.83 per cent to USD 78.83 per barrel.
In the domestic equity market, the 30-share Sensex rose by 291.29 points (0.41 per cent) to 72,012.54, while the broader Nifty increased by 79.55 points (0.37 per cent) to 21,726.75.
Foreign institutional investors (FIIs) sold shares worth Rs 865.00 crore on Thursday, as per exchange data. On the macroeconomic front, the income tax department reported a 19.41 per cent increase in net direct tax collection to Rs 14.70 lakh crore so far this fiscal, reaching about 81 per cent of the full-year target. RBI Governor Shaktikanta Das stated that the interim budget to be presented next month would not lead to inflationary pressures, citing the government’s measures to contain price rises.
(With PTI Inputs)
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