New Delhi: In early trading on Friday, the Indian rupee remained stable against the US dollar, due to continuous foreign investments being balanced out by dollar demand from foreign investors and oil companies.
Forex traders mentioned that the rupee was affected by the rebound in crude oil prices. Additionally, fragile Asian and European currencies could also harm investor confidence even more. In the interbank foreign exchange market, the domestic currency stayed within a limited range. It reached a peak of 83.62 and a bottom of 83.65 when compared to the US dollar. The rupee dropped by 5 paise on Thursday and closed at a record low of 83.63 against the US dollar.
Amit Pabari, Managing Director of CR Forex Advisors, mentioned that the Indian rupee slightly decreased against the dollar on Thursday due to higher oil prices, heightened demand for dollars from importers, and the Reserve Bank of India's actions to maintain a narrow range for the rupee. He added that with strong fundamentals and continually increasing Indian stock markets, the rupee's bias is still positive.
At the same time, the dollar index, which measures the strength of the US dollar compared to a group of six currencies, stood at 104.24, slightly up by 0.07 percent. Brent crude futures, the worldwide oil standard, dropped by 0.41 percent to reach USD 84.76 per barrel.
In the Indian stock market, the 30-stock BSE Sensex was down by 103.9 points, representing a 0.13% decrease at 81,239.56 points. The wider NSE Nifty fell by 49.05 points, or 0.2 percent, to 24,751.80 points.
Traders reported that Asian currencies dropped following a decline in European currencies while the European Central Bank (ECB) decided to maintain rates unchanged in a meeting with a potential rate cut in September. According to exchange data, Foreign Institutional Investors (FIIs) were net purchasers in the capital markets on Thursday, buying shares worth Rs 5,483.63 crore.
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