The gradual dip in global crude prices is helping economies restabilize. Its most recent effect was witnessed on the INR (Indian Rupee) when the currency gained 4 paise against the US dollar.
During early trade, INR reached 79.80 against the USD at the interbank foreign exchange. Some of the best US forex brokers think the reason behind the gain is the American currency’s weak performance overseas.
However, losses in the local stock market weighed on INR, restricting its gain. The currency opened its trade at 79.90 against the USD, which receded to 79.80 after a while. The previous session witnessed the rupee depreciating to 20 paise, closing at 79.84 against the USD.
The dollar index, a tool used to assess the USD’s strength against six currencies, also slipped 0.05% to 108.11. The global benchmark for oil, Brent crude futures, decreased 1.14% to 95.62 USD per barrel.
Some of the top forex brokers in India noted that the 30-share BSE Sensex dipped 0.59% or 351.18 points to hit 59,294.97. Similarly, the NSE Nifty dropped 0.60% to 107.35 points, reaching 17,651.10.
FIIs (Foreign institutional investors) maintained net buyers in the market as they bought shares worth 1,110.90 crore INR on Friday. After turning net buyers in June, several foreign investors have showcased significant excitement towards INR and Indian assets. They have also infused almost 44,500 crore INR in August 2022.
Given the ongoing tendencies of crude prices, the local currency is expected to gain more value in the market. If that is the case, more investors will be incentivized to inject funds.