The rupee closed the day at 81.95 after testing the day’s high at 81.9050. It opened the day 35 paise higher at 82.24 against the previous close of 82.59, tracking the overnight non-deliverable forward market.
“The rupee got strength from the beginning of the day as there was approximately $1.8 billion inflows on Adani shares as well as custodian inflows,” said KN Dey, a forex market veteran who advises co7rporate clients.
“There has also been arbitrage between onshore and offshore for some time where the offshore was lower than the onshore. Hence there was some selling in the onshore market,” said Dey.
Foreign institutional investors purchased shares worth $1.55 billion on Thursday, according to data from the exchanges. US investment firm GQG invested $1.87 billion in four Adani group companies.
This helped the local currency bounce back smartly after touching 82.9450 per dollar last Monday.
The softer dollar index following a fall in US treasury yield also supported the rupee’s upward journey. The dollar index was down at 104.88 while the 10-year US yield eased a bit to 4.05%.
