Rupee Inches Up by 1 Paisa Against US Dollar Amidst Global Factors

In early trade on Tuesday, the Indian rupee displayed a minor gain of 1 paisa against the US dollar. However, this uptick was influenced by a complex mix of domestic and global factors. 

Positive movements in domestic equities supported the rupee, offset by elevated crude oil prices and the continued strength of the US dollar on international markets.

Global Factors Driving the Dollar:

Forex traders observed that the US dollar was bolstered by increased demand for safe-haven currencies in the global market. 

This surge in demand for the American currency created headwinds for the rupee’s exchange rate.

Domestic Equities Offer Support:

Despite these global challenges, the rupee managed to hold its ground with the assistance of a positive trend in domestic equities. 

This positive momentum in the Indian stock market helped limit the rupee’s losses and contributed to its marginal gain against the US dollar.

Trading in a Narrow Range:

The rupee’s performance on the interbank foreign exchange remained within a narrow range. It initiated trading at 83.26 against the US dollar (equivalent to 23.12 against the UAE dirham). 

It experienced a slight increase to 83.25 against the greenback during the initial trade, marking a minimal gain of 1 paisa compared to its previous close.