The Rupee appreciated sharply against the Dollar, recording its biggest single day gain in two months, on strong capital inflows even as the sentiment in the forex market was boosted by better-than-expected GDP growth data for FY23 and the likelihood of the US Fed eschewing a rate hike at its next meeting.

The Indian unit, which opened stronger at 82.51, closed at 82.4050 per Dollar against the previous close of 82.7225, up about 32 paise.

“The Rupee appreciated because of three factors — there were some dollar inflows from corporates; the Chinese currency appreciated; and the Dollar Index fell on some US Fed officials’ comments that indicated the Fed may not raise the rate at its next meeting. RBI has been defending the 82.80-83.00 level since November 2022. From November till today, Rupee has closed above 83 only two times,” CR Forex Advisors MD Amit Pabari said.

Pabari expects the Rupee to trade in the 82-82.80 band over the next 10-15 days.

In intraday trades, the Rupee tested a high and a low of 82.3675 and 82.5125, respectively.

Aditi Gupta, Economist, Bank of Baroda, said, overall the Rupee is likely to trade in the range of 82-83/$ in the next fortnight.

“The dollar has seen some correction recently amidst dovish comments from Fed Vice Chair designate which have led markets to dial back expectations of a rate hike by Fed in June 2023.

“Key drivers for INR (Rupee) in the coming fortnight will come from US jobs and CPI report as well as OPEC+ meeting.”

Over the longer term, INR is likely to strengthen, and trade in the range of 80-82/$ in FY24, she said.