At the interbank foreign exchange market, the rupee commenced the day at 83.29 against the dollar, oscillating between an intraday high of 83.26 and a low of 83.33. Forex traders anticipate the rupee’s continued positive bias due to improved global risk sentiments and easing geopolitical tensions in the Middle East. However, any further escalation in the region could potentially limit gains for the domestic unit. The global oil benchmark, Brent crude futures, witnessed a slight decline of 0.34% to $88.12 per barrel. Mohammed Imran, Research Analyst at Sharekhan by BNP Paribas, highlighted that geopolitical risks in the Middle East and potential energy sanctions on Iran could lead to temporary price increases, although prices are unlikely to remain above $85 for a sustained period. The dollar index, a gauge of the US dollar’s strength against a basket of six currencies, rose by 0.16% to 105.84.
Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, predicts that the rupee will trade with a slight positive bias due to increased optimism in global markets and easing tensions in the Middle East. However, hawkish commentary from the US Federal Reserve could provide support for the dollar at lower levels. Fresh outbreaks of aggression in the Middle East could also cap potential gains for the rupee. Traders are expected to monitor durable goods orders data from the US and remain cautious ahead of inflation data later this week. The USD-INR spot price is anticipated to fluctuate within a range of Rs 83.05 to Rs 83.50.
On the domestic equity front, the Sensex closed at 73,852.94 points, a gain of 114.49 points or 0.16%. The Nifty rose by 34.40 points or 0.15% to settle at 22,402.40 points. Foreign Institutional Investors (FIIs) continued their net selling in the capital markets, offloading shares worth ₹3,044.54 crore on Tuesday, according to exchange data.
