The Rupee appreciated nine paise to 82.95 against the U.S. dollar in early trade on February 1 as market participants remained cautious ahead of the interim Budget.
Forex traders said the Rupee was trading in a narrow range as the strength of the American currency in the overseas market and a muted trend in domestic equities weighed on investor sentiments.
At the interbank foreign exchange, the Rupee opened at 83.02 against the dollar and then touched a high of 82.95, registering a gain of nine paise over its previous close.
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In initial trade, the Rupee also touched a low of 83.03 against the American currency. On January 31, the Rupee appreciated six paise to 83.04 against the U.S. dollar.
Forex traders said Rupee traded in a narrow range and market participants remained cautious ahead of the interim Budget. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.24% higher at 103.52.
“Brent crude futures, the global oil benchmark, fell 1.40% to $81.71 per barrel. Indian Rupee looks boxed between 83.00 to 83.20 narrowly as U.S. Federal Reserve decided not to cut rates,” Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said.
In the domestic equity market, the 30-share BSE Sensex was trading 55.16 points or 0.08% higher at 71,807.27 points. The broader NSE Nifty advanced 19.05 points or 0.09% to 21,744.75 points.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on January 31 as they purchased shares worth ₹1,660.72 crore, according to exchange data.
The Union government’s fiscal deficit touched ₹9.82 lakh crore or 55% of the annual Budget target at the end of December 2023, as per the official data released on Wednesday. In the corresponding period last year, the deficit was 59.8% of the Budget estimate of 2022-23.
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