The Rupee gains 45 paise to close at 81.47 against the US Dollar

The rupee appreciated 45 paise to close at 81.47 (provisional) against the US dollar on Wednesday amid falling crude oil prices, a weaker dollar and continued inflows of foreign funds.

In the interbank forex market, the local unit opened at 81.43 and saw an intraday high of Rs 81.23 and a low of Rs 81.62 during the session.

The local unit eventually stabilized at 81.47 against the US currency, registering a rise of 45 paise from its previous close.

On Monday, the rupee had settled at 81.92 against the US dollar. The foreign exchange market was closed on Tuesday due to “Gurunanak Jayanti”.

Meanwhile, the dollar index, which gauges the strength of the greenback against a basket of six currencies, rose 0.18% to 109.83.

Brent futures, the global oil benchmark, fell 0.64% to $94.75 a barrel.

“The rupiah continued to strengthen as the broader dollar saw selling pressure at higher levels. The greenback continued to remain weighed down as well ahead of the US midterm election results,” said Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services.

Some market participants are suggesting a strong chance of Republicans securing a majority in the House and a close race for control of the Senate.

“We expect USD-INR (spot) to trade sideways and range between 81.30 and 81.80,” Somaiya said.

On the domestic stock market front, the 30-stock BSE Sensex fell 151.60 points or 0.25% to end at 61,033.55, while the broader NSE Nifty fell 45.80 points or 0. .25% to 18,157.00.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets as they bought shares worth Rs 1,948.51 crore on Monday, according to data from the exchange.

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