Rupee rises 10 paise to close at 83.87 against U.S. dollar

Rupee strengthens against US dollar on easing crude oil prices and firm domestic equities, awaiting US economic data.

The rupee appreciated 10 paise to close at 83.87 (provisional) against the American currency on Thursday (August 29, 2024), supported by easing crude oil prices and a firm trend in domestic equities.

Forex traders said the market is awaiting cues from the U.S. GDP and the U.S. Personal Consumption Expenditure (PCE) inflation data, as this data point is crucial since it could sway the Federal Reserve's decision on whether to implement a 25 or 50 basis point rate cut at its September meeting.

At the interbank foreign exchange market, the local unit opened at 83.92 and touched an intra-day high of 83.84 against the U.S. dollar.

The domestic currency finally settled at 83.87 (provisional), 10 paise higher from its previous close.

On Wednesday (August 28, 2024), the rupee depreciated 4 paise to close at 83.97 against the American currency.

According to Jateen Trivedi, VP Research Analyst, Commodity and Currency, LKP Securities, the rupee gained 10 paise, as expectations of interest rate cuts continue to provide support, preventing the rupee from falling below 84.00.

"The strong demand around 84.00 keeps the rupee buoyant, with resistance seen at 83.75. The rupee is expected to trade in a positive range between 84.00-83.70," Mr. Trivedi said.