Rupee firms up 9 paise on fund inflows, crude oil boost

Brent crude futures, the global oil benchmark, fell over 1 per cent to USD 40.38 per barrel. "The Indian rupee appreciated marginally against the US dollar on Thursday supported by investment flows into the domestic equity markets and slightly weak US dollar," said Sriram Iyer, Senior Research Analyst at Reliance Securities.

The rupee on Thursday advanced by 9 paise to end at 73.46 to the US dollar as robust foreign fund inflows and easing of crude oil prices lifted forex market sentiment. Starting off the session on a positive note, the domestic currency touched the day's high at 73.16 against the greenback. After paring significant gains, the rupee finally settled at 73.46, up 9 paise.

On Wednesday, the rupee had settled at 73.55 against the US dollar. Foreign institutional investors bought equities worth Rs 838.37 crore on a net basis on Thursday, exchange data showed.

According to forex traders, softening crude oil and weaker American currency also helped rupee trade higher. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.21 per cent to 93.05.

US dollar index was trading marginally weak in Asian trade ahead of the ECB meet and lent support to the domestic currency, traders said. Brent crude futures, the global oil benchmark, fell over 1 per cent to USD 40.38 per barrel.

"The Indian rupee appreciated marginally against the US dollar on Thursday supported by investment flows into the domestic equity markets and slightly weak US dollar," said Sriram Iyer, Senior Research Analyst at Reliance Securities. "Continuation of the dovish stance taken by the ECB in June will be supportive to the non-dollar currencies," Iyer said.

On the domestic equity market front, the BSE Sensex zoomed 646 points or 1.69 per cent to end at 38,840.32; while the NSE Nifty surged 171 points or 1.52 per cent to close at 11,449.25..

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