In early trade on Wednesday, the Indian rupee fell flat against the US dollar at 82.89 (Dh22.58), defying pressure from the ongoing outflow of foreign capital and rising month-end demand for the US currency.
Forex specialists claim that the high price of crude oil, currently above $83 per barrel, also puts pressure on the rupee. Nevertheless, strong equities markets served as a buffer and prevented the rupee from falling too sharply.
According to them, investors were also waiting for clues from domestic GDP (Gross Domestic Product) figures later this week and from US GDP data that would be announced later in the day. The local currency started trading at 82.90 versus the US dollar at the interbank foreign exchange, but it gradually increased to trade at the closing level of 82.89 the day before.
On Tuesday, the rupee settled 1 paisa lower at 82.89 against the US dollar. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.09 per cent higher at 103.92.
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