India News | Rupee Recovers 8 Paise to Settle at 82.62 Against US Dollar on Forex Inflows

Mumbai, Sep 1 (PTI) The rupee recovered 8 paise to close at 82.62 against the US dollar on Friday due to forex inflows and strong macro data.

The domestic currency also found support from positive sentiment in equity markets while a stronger dollar and a spike in crude oil prices restricted gains.

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According to a survey released on Friday, manufacturing activities in India gained momentum in August as new orders and output increased at the quickest rates in nearly three years.

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) rose to 58.6 in August from 57.7 in July.

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The latest government data released on Thursday showed India recorded GDP growth of 7.8 per cent during the April-June period of 2023-24, the highest in the past four quarters, retaining its position as the world’s fastest-growing major economy.

At the interbank foreign exchange, the domestic unit opened at 82.58 and touched the lowest level of 82.76 during intra-day trade.

The Indian currency finally settled higher by 8 paise at 82.62 against the greenback.

The American currency stayed firm tracking cues from positive GDP numbers in the US while forex traders awaited employment and manufacturing growth numbers.

Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, said: “We expect rupee to trade with a slight negative bias on rising US dollar and surge in crude oil prices. However, rise in risk appetite in global markets may support rupee at lower levels. Traders may remain cautious ahead of US non-farm payroll report and ISM manufacturing PMI data. USDINR spot price is expected to trade in a range of Rs 82.30 to Rs 83.20.”

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rebounded 0.59 per cent to 104.23.

Brent crude futures, the global oil benchmark, climbed 1.08 per cent to USD 87.77 per barrel.

On the domestic equity market front, the BSE Sensex closed 555.75 points or 0.86 per cent higher at 65,387.16 points while the broader Nifty jumped by 181.50 points or 0.94 per cent to end at 19,435.30 points.

Foreign Institutional Investors (FIIs) turned net buyers in the capital market on Friday as they bought shares worth Rs 487.94 crore, according to exchange data.

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