The local currency on Wednesday registered its best single-day show this year, the rupee climbed by 37 paise to breach the psychological 64-level against the US dollar. Later, the rupee settled at 63.70 on Wednesday.
Brokerage Angel Broking in a research note said, “USDINR spot will once again trade in a positive manner on Thursday. Markets are discounting the rate cut move by the RBI in yesterday’s policy meet.”
Meanwhile, domestic equity markets opened on a flat note following mixed global cues. The BSE Sensex opened 25.81 points, or 0.08 per cent, up at 32502.55, while NSE Nifty index opened almost 0.35 points down at 10,081.15.
The governor cited low crude prices, low inflation rate, rise in global demand and buoyant financial markets behind this move. Furthermore, weak US Dollar Index after the US President signed Russia sanction bill shall provide support to the Indian Rupee.
However, foreign portfolio investors stood net sellers in domestic equity markets on Wednesday and sold shares worth Rs 919.82 crore with gross purchases and gross sales of Rs 4,579.68 crore and Rs 5,499.50 crore, respectively.