Rupee appreciates for third straight day: Local currency rises 54 paise, strengthens past 90/USD level

The rupee appreciated 54 paise to close at 89.66 (provisional) against the US dollar on Friday, supported by corporate dollar inflows and easing crude oil prices.

Forex traders said a positive trend in domestic equities and Brent crude oil prices hovering near $59 per barrel supported the domestic unit at lower levels.

The gain in the USD/INR pair follows the rupee's string of record lows in recent weeks, likely due to intervention from the Reserve Bank of India, they added.

At the interbank foreign exchange, the rupee opened at 90.19 against the US dollar, then recovered some lost ground to touch an intraday high of 89.25, registering a 95-paise gain from its previous close.

At the end of the trading session on Friday, the rupee was quoted at 89.66 (provisional), up 54 paise from its previous close.

On Thursday, the rupee appreciated by 18 paise to close at 90.20 against the US dollar. The rupee sank to a fresh record low, breaching the 91-a-dollar mark for the first time on Tuesday.

However, Choudhary noted that weakness in the US dollar index and lower crude prices could provide support at lower levels, with the USD-INR spot expected to trade in the 89.90–90.50 range.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.24% higher at 98.66.

Brent crude, the global oil benchmark, was trading 0.37% lower at $59.60 per barrel in futures trade.

Stock market on December 19

The Indian equity market snapped its four-day losing streak and closed higher on Friday, December 19, as auto, pharma and realty stocks rallied. Positive global cues and foreign fund inflows further lifted investor sentiment.

The 30-share BSE SENSEX jumped 447.55 points, or 0.53%, to close at 84,929.36. Meanwhile, NIFTY climbed 150.85 points, or 0.58%, to end at 25,966.40. The broader market, however, outperformed both the equity benchmark indices.

According to exchange data, on Thursday, the foreign institutional investors (FIIs) purchased shares worth ₹595.78 crore, while the domestic institutional investors (DIIs) bought equities worth ₹2,700.36 crore on a net basis.

Market participants' confidence also got a boost as the rupee appreciated against the US dollar on Friday after days of falling to record lows.