Mumbai: Wednesday’s rupee surged 20 pays and closed at 74.38 against the US currency, supported by foreign banks selling dollars and inflows into domestic stocks.
In the interbank forex market, the local unit opened at 74.54 against the greenback, with a daytime high of 74.30 and a low of 74.55.
Eventually it settled at 74.38, up 20 Paisa from the previous closing price.
In the previous session, the rupee fell 30 Paisa and closed at 74.58.
“The rupee has wiped out the previous day’s losses due to rising domestic stocks and a weaker dollar index. Selling the dollar on behalf of large corporations has also helped the rupee …” said Delip, a research analyst at HDFC Securities.・ Palmer states.
The market is also positioned in the Big Bang’s IPO plan to improve the dollar inflow this quarter, Palmer added.
The dollar index reversed profits in the wake of lower US Treasury yields ahead of the Federal Open Market Committee (FOMC) minutes.
“The USD / INR is expected to fall in the next few days and we can find short-term support around 74 before heading for the 73.70 medium-term trendline support, but on the higher side 74.70 will be a resistance.” Said Parmar.
On the domestic stock market side, the BSE Sensex ended at 60,223.15, up 367.22 points or 0.61 percent, while the wider NSE Nifty rose 120 points or 0.67 percent to 17,925.25.
Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.12 percent to 96.14.
Brent crude oil futures, the world’s oil benchmark, were trading at $ 80.04 a barrel, up 0.05%.
According to stock exchange data, foreign institutional investors were net buyers as they bought 1,273.86 rupees worth of shares in the capital markets on Tuesday.
Srilam Eyer, Senior Research Analyst at Reliance Securities, said:
The currency also gained support from strong domestic stocks. So far this year, foreign investors have injected US $ 482 million into Indian stocks.
The dollar index was weak in trading in Asia this Wednesday afternoon as traders awaited the release of minutes from the December meeting of the Federal Reserve Board.
“Since the beginning of this year, the USD-INR spot has been stable within range. Volatility is still low, but as a clue to the Fed’s potential rate hike pace, especially after tonight’s FOMC minutes and Friday’s USNFP data. May rise. According to Emkay Global Financial Services, tips on when to raise rates can appreciate the USD-INR spot.
https://www.siasat.com/rupee-jumps-20-paise-to-74-38-against-us-dollar-2253393/ Rupee jumps 20 pays against the US dollar to 74.38