Rupee Strengthens On Likely Foreign Inflows Into Local Stocks
Rupee appreciated 3 paise to close at Rs 83.43 against the greenback after opening at Rs 83.49, according to Bloomberg. It had closed at Rs 83.47 on Monday.
The Indian rupee closed stronger on Tuesday on likely foreign fund inflows into local stocks.
The local currency appreciated 3 paise to close at Rs 83.43 against the greenback after opening at Rs 83.49, according to Bloomberg. It had closed at Rs 83.47 on Monday.
"Foreign portfolio investments saw a net inflow of $44.1 billion in fiscal 2024, up from a $5.2 billion outflow in fiscal 2023," said an analyst with Mecklai Financial Services Pvt.
The rupee had opened weaker against the dollar earlier in the day, tracking the rise in oil prices. Brent crude was at $84.81 a barrel, and the US dollar index was at $105.52. Oil prices had initially risen by 1.08% to $86.16 a barrel on Monday, fueled by rising geopolitical tension in West Asia.
"Brent oil prices edged higher at $85.05 per barrel as traders expected an increase in demand during the summer season, while supply disruptions in Russia and the Middle East kept crude well bid," said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
"Prices have been nearing highs since early May, but further gains were held back due to a strong dollar and anticipated US rate cuts," he said.
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Media reports suggest that in an attempt to force Russia to choose more expensive routes for energy needs, European Union nations issued a statement on Monday stating that they "forbid reloading services of Russian LNG in EU territory for the purpose of transshipment operations to third countries."
The EU has targeted the Kremlin’s liquefied natural gas shipments for the first time. These factors supported the price of crude oil and are expected to weigh on the Indian unit.
