The Indian rupee appreciated 1.05% against the US dollar for the week ended Friday, July 24 to stand at 48.22 after fluctuating throughout the week as against previous week`s close on Friday, July 17 at 48.73 on account inflows from foreign institutional investors (FIIs) on the back of gains in local equities.
At the beginning of the week, on Monday, July 20, rupee appreciated on account of inflows from foreign institutional investors (FIIs) as hefty gains in the local equities. Weaker US unit amongst other major currencies overseas also supported the market sentiment. Meanwhile, the dollar demand from oil importers capped local unit from further rise. The partially convertible rupee settled at Rs 48.20 against US dollar stronger than its Friday`s close of 48.73.
Thereafter, on Tuesday, July 21, rupee depreciated on account of losses in local equities. Demand from importers of US units also supported the market sentiment. But dollar sales from exporters capped the further fall of local unit. The partially convertible rupee settled at Rs 48.43 against US dollar weaker than its Monday`s close of 48.20.
In the mid-week on Wednesday, July 22 rupee depreciated on account of losses in local equities which raised the fears of more capital outflows. Banks purchased US units for oil companies and other importers also supported the market sentiment. But dollar sales by exporters capped the further losses of local unit. The partially convertible rupee settled at Rs 48.51 against US dollar weaker than its Tuesday`s close of 48.43.
Thereafter, on Thursday, July 23 rupee appreciated as banks purchased US dollars for oil companies and other importers. Gains in local equities also supported the market sentiment. But, dollar sales by banks also helped. The partially convertible rupee settled at Rs 48.46 against US dollar stronger than its Wednesday`s close of 48.51.
Finally, at the last day of the week, on Friday, July 24 rupee appreciated as banks sold US dollars for foreign institutional investors (FIIs) on the back of gains in local equities. FII inflow into a real estate companies helped the market sentiment. Some exporters also sold US units but dollar demand from importers capped the local unit from further rise. The partially convertible rupee settled at Rs 48.22 against US dollar stronger than its Thursday`s close of 48.46.
The Sensex ended the day with a gain of 147.92 points, or 0.97% at 15,378.96 after touching a high of 15,418.61 and a low of 15,168.52. The broad-based NSE Nifty climbed 44.80 points, or 0.99% at 4,568.55 after hitting a high of 4,578.75 and a low of 4,504.85.
Source : Myiris.com