Rupee gains 12 paise to 81.76 against the US dollar, ahead of Union Budget

• The rupee opened on a positive note, gaining 12 paise to 81.76 against the US dollar.
• On Tuesday, the rupee depreciated by 36 paise to close at a three-week low of 81.88 against the US dollar.

The rupee opened on a positive note, gaining 12 paise to 81.76 against the US dollar in early trading on Wednesday ahead of the budget of the Union presentation. In interbank foreign exchange, the domestic unit opened at 81.76 against the dollar, up 12 paise from its previous close.

On Tuesday, the rupee depreciated by 36 paise to close at a three-week low of 81.88 against the US dollar after the 2022-23 Economic Survey said the domestic unit may remain under pressure due to the flattening of exports and subsequent easing of the current rate. account deficit.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.02 percent to 102.08.

Brent oil futures, the global oil benchmark, fell 0.48 percent to USD 84.49 a barrel.

The presentation of the Union will now focus on the government’s fiscal consolidation path Budget FY24. Investors will also be watching the outcome of the Fed meeting later tonight, forex traders said.

“We have the EU budget today. We believe that the key to making both the stock market and the bond market happy is a theme that focuses on capex and fiscal consolidation,” said IFA Global Research Academy in a research note.

Finance minister Nirmala Sitharaman will present its fifth budget in a row on Wednesday at a time when the economy is slowing due to global headwinds and specific sectors need attention.

Ahead of the budget’s presentation, expectations are rife that it will adjust income tax brackets to provide relief for the middle class and increase spending for the poor through programs such as the rural jobs scheme, while at the same time increase financial incentives for local production. .

But it must do all this while staying on the path of fiscal consolidation.

In the domestic stock market, the 30-stock BSE Sensex traded 352.75 points or 0.59 percent higher at 59,902.65. The broader NSE Nifty rose 96.75 points, or 0.55 percent, to 17,758.90.

Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday as they sold shares worth Rs 5,439.64 crore, according to exchange data.

The government’s budget deficit stood at 59.8 percent of its full-year budget estimate at the end of December, based on moderate revenue collection growth, according to Treasury Department data released Tuesday.

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