INR Settles Higher Amid Strong Buying In Equities

Published on Jun 05, 2024 16:44

The Indian rupee recovered 14 paise to close at 83.37 (provisional) against the US dollar on Wednesday, tracking strong buying in domestic equities and lower crude oil prices in international markets. Indian markets rebounded sharply on Wednesday, after having suffered heavy losses in the previous session amid concerns that a smaller majority will see Prime Minister Modi face more difficulty in doling out reforms and infrastructure spending. The benchmark S&P BSE Sensex rallied 2,303.19 points, or 3.20 percent, to 74,382.24 as a third term for Prime Minister Narendra Modi appeared certain with the NDA hovering around the 300 mark. The broader NSE Nifty index jumped 735.85 points, or 3.36 percent to 22,620.35 as government and cabinet formation loomed in the background. However, a surging greenback against major crosses overseas and fresh foreign fund outflows restricted gains in the local currency. At the interbank foreign exchange market, the local unit opened at 83.50 and touched the intra-day peak of 83.28 against the domestic unit during the session. It finally settled at 83.37 (provisional) against the dollar, registering a gain of 14 paise from its previous close.