Image used for representational purpose.
| Photo Credit: Reuters
The rupee recovered from the lower level and appreciated 7 paise to 83.44 against the U.S. dollar in early trade on June 5, taking cues from domestic equity markets and lower crude oil prices overseas.
Forex traders said the rush for value-buying triggered an uptrend in equity markets, boosting the local currency which saw a steep decline on June 4 after the general elections results showed a less-than-expected majority for the BJP-led NDA.
Also read | Markets bounce back in early trade after massive drop on value-buying at lower levels
At the interbank foreign exchange market, the local unit opened at 83.50 and recovered some lost ground to trade at 83.44 against the greenback, registering a rise of 7 paise from its previous close.
On Tuesday, the domestic currency settled at 83.51 against the dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09% higher at 104.14.
Brent crude futures, the global oil benchmark, slipped 0.03% to $77.50 per barrel.
On the domestic equity market, the 30-share BSE Sensex climbed 172.89 points to 72,251.94 in early trade. The NSE Nifty went up 39.25 points to 21,923.75.
Both the indices ended more than 6% lower on Tuesday amid fear selling after the counting of votes showed disappointing results for the BJP-led NDA in the Lok Sabha elections with the alliance facing losses in its strongholds in the Hindi heartland, although it is expected to form the government with about 290 seats.
Foreign investors were net sellers of Indian equities on Monday as they offloaded shares worth ₹12,436.22 crore on a net basis. FIIs bought shares worth ₹26,776.17 crore and sold equities worth ₹39,212.39 crore in the cash segment.
Sunil Garnayak is an expert in Indian news with extensive knowledge of the nation’s political, social, and economic landscape and international relations. With years of experience in journalism, Sunil delivers in-depth analysis and accurate reporting that keeps readers informed about the latest developments in India. His commitment to factual accuracy and nuanced storytelling ensures that his articles provide valuable insights into the country’s most pressing issues.
