The rupee strengthened by 27 paise to close at 87 (provisional) against the US dollar on Thursday, supported by strong macroeconomic data and a decline in crude oil prices. A weaker US dollar index also aided the domestic currency, forex traders said.
However, pressure from losses in domestic equities and continued foreign capital outflows limited further gains, they added.
At the interbank forex market, the rupee opened at 87.13, touched an intraday high of 86.94, and slipped to a low of 87.15 before settling at 87 (provisional), marking a 22 paise gain from its previous close. On Wednesday, the rupee had ended 1 paisa lower at 87.22 against the dollar.
Also Read:Rupee jumps 19 paise to 87.03 vs US dollar
Dollar index and crude oil trends
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.12 per cent at 103.70. Brent crude, the global oil benchmark, declined 0.37 per cent to USD 70.69 per barrel in futures trade.
Globally, US President Donald Trump escalated trade tensions by imposing a 25 per cent tariff on all steel and aluminium imports, arguing that such measures were necessary to reclaim wealth “stolen” by other nations.
In response, Canada slapped tariffs on various US goods, including textiles, water heaters, beef, and bourbon. The European Union (EU) also announced plans to raise tariffs on American products such as beef, poultry, bourbon, motorcycles, peanut butter, and jeans.
Also Read:Rupee inches lower to 87.28 vs US dollar
Sensex drops 201 points, Nifty slips below 22,400
Meanwhile, Indian equities closed lower amid a broad-based sell-off, except for gains in the PSU banking sector. The BSE Sensex dropped 201 points, or 0.27 per cent, to settle at 73,828.91, while the Nifty50 declined 73.3 points, or 0.33 per cent, to end at 22,397.2.
Meanwhile, broader markets also closed in the red, with small-cap stocks witnessing steeper losses than mid-cap stocks.
