Rupee Settles Higher At 73.42 Against Dollar Amid Market Gains

The rupee surged by seven paise against the US dollar on Tuesday, December 29, to settle at 73.42 (provisional), amid positive domestic equities and weak American currency. This was the fourth straight session of the domestic unit’s gain against the dollar. At the interbank foreign exchange market, the local unit opened at 73.42 against the dollar and registered an intra-day high of 73.34. It witnessed a low of 73.44. In the opening session, the rupee rose by 11 paise at 73.38 against the dollar keeping on track with stronger Asian peers. The domestic unit finally closed at 73.42 against the greenback, registering a rise of seven paise over its previous close. On Monday, December 28, the rupee had settled at 73.49 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.32 per cent to 90.04. According to traders, the sustained foreign fund inflows also supported the rupee. ”RBI was present at 73.50 yesterday and took the pair about 12 paise higher before selling took over. For the day keeping a close watch on RBI we would expect to sell the $ on all major uptics. Importers can book near 73.30/40 for near term,” said Mr Anil Kumar Bhansali, Head – Treasury, Finrex Treasury Advisors.

On the domestic equity market front, the BSE Sensex ended 259.33 points or 0.55 per cent higher at 47,613.08, while the NSE Nifty surged 59.40 points or 0.43 per cent to 13,932.60. ”Global shares extended their year-end rally on Tuesday, with Japanese stocks hitting a 30-year high. Investors’ risk appetite was encouraged by a Brexit trade deal and hopes that a long-awaited U.S. pandemic relief package will be expanded. Euro zone’s marathon COVID-19 vaccination campaign also brightened prospects for global growth in 2021,” said Mr. Deepak Jasani, Head of Retail Research, HDFC Securities.