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Rupee appreciates to 82.31 vs dollar — key factors at play

Rupee appreciates to 82.31 vs dollar — key factors at play

Rupee appreciates to 82.31 vs dollar — key factors at play
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By Asmita Pant  Oct 19, 2022 5:59:55 PM IST (Updated)

The rupee rose five paise from its previous close to 82.31 vs dollar on Wednesday amid easing greenback and rising oil prices.

The rupee rose to 82.31 against dollar on Wednesday, five paise higher than its previous close. Fall in greenback against six other peers supported the currency. However, rise in global oil benchmarks kept the gains under check.

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Factors impacting the rupee:
- Crude oil at $92.7 amid tight supply fears following reports of lower inventories in US.
- Dollar index down 0.2 percent at 111.8
- Equities extend gains, Nifty50 surpasses 17,500
The dollar index — which measures the greenback against the yen, the pound, the Canadian dollar, the Swedish krona, the Swiss franc and the euro — was last seen trading nearly flat at 112.
Crude oil prices rose on Wednesday as concern over tight supplies following reports of lower inventories in the United States offset fears of lower demand from top oil importer China. Brent crude futures were up 0.6 percent at $90.5 per barrel at the last count. WTI futures were last trading 1.1 percent higher at nearly $83 per barrel.
"RBI’s currency intervention in a spot along with a buy-sell swap to maintain the rupee liquidity has led to a sharp fall in forward premiums to 2.5 percent from 2.8 percent trading a month ago. This makes the rupee less attractive for carry traders and seller and keeps them at bay also when the USDINR trend remain on the upside," said Amit Pabari, Managing Director at CR Forex Advisory.
"On the other side, the dips close to 82.20 and levels below are been aggressively bought as seen in the past couple of sessions. As we have been mentioning, the dips in USDINR would be short-lived and the trend in the pair remains on the upside, the firecracker can start busting again for the rupee post-Diwali and the pair can set its move for another record high," he said.
Indian equity benchmarks BSE Sensex and NSE Nifty50 extended gains on Wednesday, amid strength across global markets.
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