Rupee recovers from all-time low rises 5 paise to close at 83.73 against US dollar

     Mumbai, Jul 26 (PTI) The rupee recovered from its all-time low level and appreciated 5 paise to 83.73 against the US dollar on Friday, on strength in the domestic markets and expectations of fresh foreign inflows.
     Forex traders said the rupee traded within a narrow range, taking cues from the dollar index, which remained flat.
     At the interbank foreign exchange market, the local unit opened at 83.72 and touched an intra-day high of 83.69 against the dollar during the session.
     It finally settled at 83.73 against the American currency, up 5 paisa from its previous close.
     On Thursday, the rupee dropped 7 paise to close at an all-time low of 83.78 against the US dollar.
     "Indian rupee was in a range of 83.71-73 for the entire day as markets digested the indexation removal in LTCG in the budget. Rupee looks to be range-bound as the RBI was standing to protect it around 83.73," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
     The closing was the lowest for rupee on a daily and weekly basis while it made an all time low of 83.73. Important data in the evening might determine the course of rupee on Monday. The range for Monday looks to be between 83.65/85, Bhansali added.
     "Market participants are focused on the Personal Consumption Expenditures (PCE) Price Index, with significant attention on the upcoming US FED policy meeting on July 31," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
     Trivedi further said the anticipation of an interest rate cut in the September policy could add pressure on the dollar, especially if hints are given during the July-end policy. "The rupee is expected to continue its sideways range between 83.60 and 83.80," he said.
     Brent crude futures, the global oil benchmark, fell 0.49 per cent to USD 81.97 per barrel.
     "Brent oil is poised for a third weekly decline, pressured by Gaza ceasefire hopes and a muted demand. Brent oil was trading at USD 81.93 off its lows of USD 80.25 achieved yesterday (Thursday)," Bhansali said.
     In the domestic equity market, the 30-share BSE Sensex rose 1,292.92 points, or 1.62 per cent, to settle at 81,332.72 points, and Nifty advanced 428.75 points, or 1.76 per cent, to 24,834.85 points.
     Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was at 104.33, lower by 0.02 per cent.
     "Asian stocks ended lower, except for a flat close from Hang Seng while Europe was all up in today's trade. Indian equities were on a roll today with IT, mid-cap and small-cap all doing well.
     "The markets were up by almost 1.75 per cent. Asian currencies were all down with CNH leading the pack as it fell to 7.2599 after touching almost 7.20 yesterday (Thursday)," Bhansali said.
     Foreign institutional investors (FIIs) were net buyers in the capital markets on Friday as they purchased shares worth Rs 2,546.38 crore, according to exchange data.

(This story has not been edited by THE WEEK and is auto-generated from PTI)