On October 22, the Indian rupee increased by 11 paise and settled at 74.16 versus the U.S. dollar, helped by positive domestic equities and sustained foreign fund inflows.
Significantly, at the interbank forex market, the domestic unit opened at 74.15 versus the greenback and touched an intra-day high of 74.09 and a low of 74.21. The domestic unit finally located at 74.16 versus the U.S dollar, registering a rise of 11 paise over its previous close.
On October 19, the rupee has touched 74.27 against the greenback.
According to Energy & Currency Research, Religare NSE 1.57 % Broking, Sugandha Sachdeva VP-Metals, the rupee is currently drawing support from equity inflows and the fact that the greenback globally is on the back foot.
Furthermore, the dollar index, which measures the dollar’s strength against a basket of six currencies, increased by 0.08 percent and settled at 92.36.
According to Sachdeva, in the future, they believe that the rupee has scope to more appreciate to 73.80. However, they say that the RBI would step in to curtail its move, while the dollar index may also recover given the uncertain increase outlook in the United States. That should put some descending pressure on the rupee.
Moreover, Sachdeva also remarked that the domestic unit is likely to trade in the 73.80 to 75 band until the end of November.
BSE and NSE increased 282.29 and 87.35, respectively
Additionally, the 30-share BSE benchmark Sensex increased by 282.29 points and settled at 43,883.25 on the domestic equity market front. Besides, the broader NSE Nifty boosted 87.35 and settled at 12,859.05.
Another essential thing to mention is that Foreign institutional investors were net buyers in the capital market as they bought shares worth Rs 1,180.61 crore on a net basis on October 19.
Furthermore, the global oil benchmark, Brent crude futures, increased by 0.38 percent and settled at $44.37 per barrel.