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Rupee Rises 3 Paise To Close At 73.88 Against US Dollar

On Wednesday, the rupee appreciated by 10 paise to close at nearly a one-month-high of 73.91 against the US dollar.

Rupee Rises 3 Paise To Close At 73.88 Against US Dollar
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Rupee Rises 3 Paise To Close At 73.88 Against US Dollar
outlookindia.com
2020-11-26T18:59:26+05:30

Rising for the fifth straight session, the rupee appreciated 3 paise to close at 73.88 against the US dollar on Thursday, tracking heavy buying in domestic equities and sustained foreign fund inflows.

At the interbank forex market, the domestic unit traded in a narrow range as rising Covid-19 cases offset positive sentiments surrounding the progress on the vaccine front.

The domestic unit opened at 73.85 against the greenback and witnessed an intra-day high of 73.75 and a low of 73.89.

The local unit extended gains for the fifth consecutive day and finally closed at 73.88 against the American currency, registering a rise of 3 paise over its previous close.

On Wednesday, the rupee appreciated by 10 paise to close at nearly a one-month-high of 73.91 against the US dollar.

"Rupee after appreciating in the past few sessions consolidated in a narrow range on Thursday as market participants awaited for the GDP number that will be released on Friday. The expectation is that the number could come in marginally better-than-estimates and that could further extend gains for the currency," Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services, said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 92.04.

"Indian Rupee appreciated amid weakness in dollar and rise in risk appetite in the global markets. The dollar showed weakness on disappointing economic data from the US, and US Federal Reserve policy meeting minutes showed that the central bank is committed to using the full range of tools to support the economy if required.

"Sharp gains were prevented on concern that rising coronavirus cases across the globe will threaten the economic recovery. Rupee may trade in a range of 73.65 to 74.60 in next couple of sessions," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 24.20 crore on a net basis on Wednesday, according to exchange data.

"The Indian Rupee ended flat against the US currency on Thursday as the impact of positive regional cues, foreign fund inflows and a broad dollar decline offset likely intervention on behalf of the central bank," said Sriram Iyer, Senior Research Analyst at Reliance Securities.

On the domestic equity market front, BSE Sensex ended 431.64 points or 0.98 per cent higher at 44,259.74, while the broader NSE Nifty jumped 128.60 points or 1 per cent to 12,987.00.

"Rupee traded muted by afternoon trade on Thursday tracking the US dollar. Profit booking in stocks by traders is supporting the pair USD/INR as compared to the dollar index which fell. The range of 73.90 - 74.50 can continue due to major update yet to be announced in terms of US stimulus package," Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.

Brent crude futures, the global oil benchmark, fell 1.21 per cent to USD 48.02 per barrel.

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