The Indian rupee held steady for the second consecutive session, closing eight paise higher at 83.79 against the US dollar on August 20. This was supported by positive domestic equity markets, a weaker US dollar, and lower crude oil prices.
Forex traders noted that while these factors helped the rupee, foreign fund outflows prevented a significant rise in the local currency. The rupee opened at 83.86 at the interbank foreign exchange and fluctuated between 83.76 and 83.88 during the session, before settling at 83.79.
On Monday, the rupee had also gained eight paise, closing at 83.87 against the US dollar. Traders observed that a drop in crude oil prices provided some relief to the rupee, but continued foreign institutional investor (FII) outflows limited its gains.
Meanwhile, the dollar index, which measures the strength of the US dollar against six other currencies, dropped slightly by 0.04% to 101.68. Brent crude, the global oil benchmark, also decreased by 0.31% to $77.42 per barrel.
In the domestic equity markets, the Sensex rose by 378.18 points, or 0.47%, reaching 80,802.86 points. The Nifty also climbed 126.20 points, or 0.51%, to close at 24,698.85 points. Despite this, FIIs were net sellers, withdrawing shares worth Rs 2,667.46 crore.
