Rupee Gains 11 Paise Against Dollar

The rupee has continued its winning momentum on Wednesday, rising 11 paise to reach 83.02 (provisional) against the U.S. dollar, tracking a firm trend in equity markets and easing crude prices. This is the sixth straight session that the rupee has been increasing its value against the dollar.

Indian currency opened at 83.13 at the interbank foreign exchange market and reached the day”s high of 82.97 and low of 83.18 before closing at 83.02. On Tuesday, the rupee had closed at 83.1.

Experts attribute the rise of the rupee to a strong domestic market and a weak U.S. dollar. Falling crude oil prices also contributed to the gain. Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said the World Bank”s growth projection of 6.4% for the next fiscal year boosted investor sentiment.

Meanwhile, the dollar index, which gauges the greenback”s strength against a basket of six currencies, was trading 0.16% lower at 102.11 on January 10.

Brent crude futures, the global oil benchmark, declined 0.67% to $77.07 per barrel. On the domestic equity market front, Sensex rose 271.50 points, or 0.38%, to settle at 71,657.71 points. The Nifty advanced 73.85 points, or 0.34%, to 21,618.70 points.

Foreign institutional investors (FIIs) sold shares worth Rs.990.90 crore on Tuesday, according to exchange data.