By laksh5382 
Rupee The US dollar on Tuesday rose 4 paise to close at 83.96 (provisional) tracking improvement in domestic equity markets after six consecutive sessions of decline.
Forex traders said the domestic unit got further boost as the dollar weakened against international currencies, but they added that rising crude oil prices and a rise in foreign fund outflows capped sharp gains.
Some experts say that the market gained momentum after BJP’s victory in the Haryana Assembly elections, which helped the rupee.
At the interbank foreign exchange, the rupee opened at 83.97 against the greenback and traded in the range of 83.92-83.97 during the day. It closed at 83.96 (provisional) against the US dollar, up 4 paise from Monday’s close of 84.00.
“The rupee gained on a positive note in the domestic market after Haryana’s ruling party BJP defied exit polls to win the state assembly elections for the third time. However, a weak trend in global markets capped sharp gains.” said Anuj Chaudhary, research analyst at Sharekhan by BNP Paribas.
“We expect the rupee to trade with a negative bias due to selling pressure from FIIs and geopolitical tensions in the Middle East. However, a soft US dollar and improvement in domestic markets may support the rupee at lower levels,” he said. “
Meanwhile, domestic stock markets regained momentum after suffering losses for six consecutive trading sessions. When Sensex Jumped 584.81 points to close at 81,634.81 nifty It rose 217.40 points to 25,013.15.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.13 percent at 102.40.
International benchmark Brent crude fell 1.90 percent to $79.39 in futures trade.
Foreign Institutional Investor (FII) There were net sellers in the capital market on Monday, as they sold shares worth ₹8,293.41 crore on a net basis in the cash segment, according to exchange data.
Market participants also kept a close eye on this RBI’s Monetary policy will be announced on Wednesday. The reconstituted rate-setting panel of the Reserve Bank of India (RBI) has started deliberations on the next bi-monthly monetary policy.
In the current context, experts believe that the RBI cannot follow the US Federal Reserve, which has reduced benchmark rates by 50 basis points, and the central banks of some developed countries, which have since cut interest rates. Has reduced.
“Investors may remain cautious ahead of the outcome of RBI’s monetary policy meeting on Wednesday. RBI is expected to maintain status quo. USD-INR spot price is expected to trade in the range of ₹83.80-84.20,” Chaudhary said. ”