Rupee gains 14 paisas to 79.77 US dollars

Early on Thursday, the rupee strengthened 14 paise to 79.77 against the US dollar, after the overnight decline of the American currency.

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Early on Thursday, the rupee strengthened 14 paise to 79.77 against the US dollar, after the overnight decline of the American currency.

Forex traders warned that increased oil prices, month-end importer demand, and concerns about a worldwide recession could limit the gains for the local currency.

The rupee gained 14 paise from the previous close to start trading at 79.77 versus the American dollar at the interbank foreign exchange, where it had begun at 79.80.

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The rupee lost 13 paise on Wednesday, ending the day at 79.91 against the US dollar.

“Rupee opened slightly stronger than Wednesday’s close. The US Fed increased rates by 75 basis points and said that the aim is to bring inflation down to 2 per cent but was also a bit dovish in its approach,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

Bhansali also pointed out that Asian currencies were up while the Dow Jones and other indices were all up. “Though the dollar index fell below 107 levels, the dollar still remains strong until it breaches the 105 level,” he said.

The dollar index, which measures the strength of the dollar against a basket of six different currencies, decreased 0.222% to 106.21.

Benchmark Brent crude futures for world oil increased by 0.83 percent to $107.50 per barrel.

The 30-share Sensex was up 464.87 points, or 0.83 percent, at 56,281.19 on the domestic stock front, while the larger NSE Nifty was up 118.45 points, or 0.71 percent, at 16,760.25.

According to exchange data, foreign institutional investors continued to be net sellers on Wednesday in the capital market, selling shares worth 436.81 crore.