On Wednesday, the Indian rupee experienced a positive upward movement, gaining 15 paise to reach a provisional closing value of 82.10 against the US dollar. This increase was supported by strong macroeconomic fundamentals, foreign institutional investor (FII) inflows, and a weaker performance of the US dollar compared to other major currencies worldwide.

At the interbank foreign exchange market, the rupee commenced trading at 82.28 against the US dollar and settled at 82.10 (provisional), marking a 15 paise improvement from the previous close. This positive trend was influenced by a favorable performance in domestic equities.

Throughout the day, the rupee witnessed a high of 82.08 and a low of 82.32.

Anuj Choudhary, a Research Analyst at Sharekhan by BNP Paribas, stated that the Indian rupee reached a one-month high due to reports of corporate inflows and positive performance in domestic equities. Choudhary further highlighted that the weakened US dollar also contributed to the rupee’s strength, while the recovery in crude oil prices somewhat limited sharp gains. The decline of the US dollar was driven by increasing expectations of a pause in rate hikes by the US Federal Reserve. Choudhary added that they anticipate the rupee to trade positively, taking advantage of the weakened dollar and expectations of no rate hikes by the US Federal Reserve.

Choudhary further commented that if global markets exhibit an increased appetite for risk, it could also support the rupee. However, a positive outlook for crude oil prices might hinder significant upside gains. Choudhary’s near-term projection for the USD/INR spot is expected to range between 81.60 and 82.50.

The dollar index, which measures the strength of the US dollar against a basket of six currencies, experienced a 0.18% decline, reaching 103.15.

Meanwhile, Brent crude futures, the global oil benchmark, increased by 1.09% to reach USD 75.10 per barrel.

In the domestic equity market, the 30-share BSE Sensex saw a slight gain of 85.35 points or 0.14%, closing at 63,228.51 points. The broader NSE Nifty also rose by 39.75 points or 0.21%, ending at 18,755.90 points.

According to exchange data, foreign institutional investors (FIIs) were net buyers in the capital markets on Tuesday, with share purchases worth Rs 1,677.60 crore.

On the domestic macroeconomic front, the wholesale price-based inflation rate dropped to a three-year low of (-) 3.48% in May, primarily due to decreasing prices of food, fuel, and manufactured items. This decline strengthens the argument for maintaining the pause in rate hikes in the upcoming months of the current fiscal year.