INR Settles Modestly Higher As Dollar Weakens; Massive Sell-Off In Local Equities Cap Gains

The Indian rupee recovered 9 paise to settle at 83.31 (provisional) against the US dollar on Thursday on the back of softening American currency as well as crude oil prices in the overseas market. The dollar index recoiled back below 105 mark supporting gains in the domestic unit although negative cues from equities placed a lid on rupee gains. The benchmark S&P BSE Sensex fell 617.30 points, or 0.83 percent, to 73,885.60 amid a widespread sell-off. The broader Nifty 50 index closed at 22,488.65, down 216.05 points, or 0.95 percent, from its previous close. Global sentiment was fragile amid continued uncertainty about the Federal Reserve's interest-rate path. Middle East worries also sapped investors' appetite for risk after an Israeli official cautioned that the war in Gaza might persist until the year's end to achieve the aim of destroying the Palestinian group. Investors looked ahead to the exit poll results for Lok Sabha Elections, which will be out after last phase of polling on June 1. The actual election results are set to be announced on June 4. At the interbank foreign exchange market, the local unit opened at 83.42 and oscillated between the intra-day high of 83.26 and lowest level of 83.44 during the session. It finally settled at 83.31 (provisional), registering a gain of 9 paise from its previous closing level.

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