Rupee Gains Ground Against Dollar Amidst Equity Concerns and Foreign Outflows

Rupee gained: In the early hours of trading on Thursday, the Indian rupee demonstrated resilience against the US dollar, gaining 8 paise to reach 83.44. This uptick came as a welcome relief after the dollar retreated from its recent highs. However, market sentiments were tempered by concerns over domestic equity trends and ongoing foreign fund outflows.At the interbank foreign exchange market, the rupee commenced trading at 83.49 against the dollar before edging down to 83.44, marking a modest improvement from its previous close. Yet, the currency remained under pressure due to the substantial selling of Indian stocks by Foreign Portfolio Investors (FPIs), totalling over Rs 6,000 crore on Wednesday.Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP pointed out the impact of FPIs' stock sell-off, which bolstered dollar demand and weighed on the rupee. Despite the Reserve Bank of India's efforts to support the local currency by selling dollars, the possibility of sustained dollar buying loomed.Meanwhile, global market dynamics influenced trading sentiments. The dollar index, reflecting the greenback's performance against other major currencies, saw marginal weakness, trading at 105.51. Notably, cautionary remarks from US Federal Reserve speakers regarding prolonged higher interest rates impacted market sentiment.Brent crude futures experienced a slight uptick in the commodities arena, rising by 0.43 per cent to USD 83.94 per barrel.Domestically, early trading saw a downturn in the equity market, with the BSE Sensex shedding 176.2 points (0.24 per cent) to 73,290.19, and the NSE Nifty slipping 49.75 points (0.22 per cent) to 22,252.75.Foreign Institutional Investors (FIIs) continued their net selling trend in the capital markets, offloading shares worth Rs 6,669.10 crore on Wednesday, according to exchange data. With PTI Inputs

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Rupee Gains Ground Against Dollar Amidst Equity Concerns and Foreign Outflows

The market sentiments were tempered by concerns over domestic equity trends and ongoing foreign fund outflows.

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