INR seen supported by dollar weakness and positive equities

The Indian rupee pared initial gains and settled for the day with gains of just 3 paise at 95.70 against the US dollar on Thursday, as the support from the weaker dollar index was negated by elevated crude oil prices. A weaker US dollar eases some depreciation pressure on the domestic currency but crude oil hovering above USD 90 is likely to keep pressure on India's import bill. The dollar index fell to its lowest level since late May after the US Treasury announced that it would double its buyback operations for longer-dated Treasury bonds, pushing US long-term yields lower and reducing the dollar's yield advantage. Positive gains from local equities also kept rupee supported. . The NIFTY 50 closed up 153.55 points (+0.64%) at 24,231.85, while the BSE SENSEX surged 628.04 points (+0.82%) to end at 77,537.72

 

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