On Thursday, the rupee depreciated by two paise to 89.24 against the dollar. The Sensex opened 305 points higher at 85,915. Softening oil prices and active participation from foreign investors provided some support to the currency and equity markets.
Trade: In early trade on Thursday, the rupee fell by two paise to 89.24 against the US dollar. In the interbank foreign exchange market, the rupee opened at 89.19 per dollar and, after an initial decline against the US currency, reached 89.24 at the start of trading.
The main reasons cited for the rupee's weakening are global trade volatility and increased demand for the dollar from importers. However, fresh inflows of foreign investment into the domestic stock market and softening crude oil prices in the international market provided some support to the rupee.
On Wednesday, the rupee had closed at 89.22 against the US dollar. Meanwhile, the dollar index, which reflects the US dollar's position against six major currencies, fell by 0.09 percent to 99.43.
Domestic Stock Market Opens Strong
Domestic stock markets witnessed a positive opening on Thursday. The Sensex opened 305.82 points or 0.36 percent higher at 85,915.33 in early trade. The Nifty opened 69.15 points or 0.26 percent up at 26,274.45. Investor confidence and foreign capital inflows are supporting the broader market. Foreign Institutional Investors (FIIs) remained active on Wednesday, making net purchases of shares worth Rs 4,778.03 crore.
Brent Crude Softens
In the international market, Brent crude prices fell by 0.43 percent to $62.86 per barrel. The dollar index closed down 0.09 percent at 99.43, indicating a slightly weaker position for the US dollar in the global currency market.
