Forex traders said positive PMI services data also boosted investor sentiments.
New Delhi:
The rupee on Friday strengthened by 63 paise to close at a one-month high of 81.97 (provisional) against the US dollar as fresh foreign fund inflows and positive domestic equities supported investor sentiment.
Forex traders said positive PMI services data also boosted investor sentiments.
At the interbank forex market, the local unit opened at 82.28 against the American currency and finally closed at 81.97 (provisional) against the greenback, registering a gain of 63 paise over its previous close of 82.60.
The rupee touched a high of 81.92 and a low of 82.35 against the dollar during the trading session.
Anuj Chowdhary, research analyst at Sharekhan by BNP Paribas, said Indian rupee rose to a one-month high on hot service PMI data.
The Indian services sector expanded at the strongest rate in 12 years in February, supported by favorable demand conditions and new business gains, a monthly survey said on Friday. The seasonally adjusted S&P Global India Services PMI business activity index rose from 57.2 in January to 59.4 in February – its highest level in 12 years.
“We expect the rupee to trade marginally positive on improving global risk sentiments and fresh FII inflows. Weak crude oil prices may also support the domestic currency,” said Anuj Chowdhary.
However, any further downside in the US dollar may capped the upside and put pressure on the rupee at higher levels amid rising dovish Federal Reserve expectations and concerns of a slowdown in India’s GDP growth.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.19 per cent to 104.82.
Global oil benchmark Brent crude futures fell 0.55 per cent to $84.28 per barrel.
On the domestic equity market front, the 30-share BSE Sensex advanced 899.62 points, or 1.53 per cent, to close at 59,808.97, while the broader NSE Nifty advanced 272.45 points, or 1.57 per cent, to 17,594.35.
Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they bought shares worth Rs 12,770.81 crore, according to exchange data.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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