Friday, June 2, 2023

Rupee spurts 39 p to nearly 2-week high of 79.52 against dollar

The rupee rebounded by 39 paise to close at a nearly two-week high of 79.52 against the US dollar on Tuesday, supported by foreign fund inflows and a correction in crude oil prices.
The US dollar retreating from the 20-year high levels against a basket of world currencies also supported the local unit.
At the interbank forex market, the local unit opened at 79.92 against the greenback. It witnessed an intra-day high of 79.44 and a low of 79.92 against the American currency during the session.
It finally ended at 79.52 against the US dollar, up 39 paise from its previous close. The rupee had settled near this level on August 17 previously.
In the previous session, the rupee depreciated 7 paise to close at 79.91 against the American dollar. The rupee fell to its all-time low of 80.15 against the US dollar in intra-day trade.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, slipped 0.06 per cent to 108.76. The dollar index had surged to 109.48 in overnight trade, a level not seen since September 2002.
Brent crude futures, the global oil benchmark, fell 2.23 per cent to USD 102.75 per barrel.
“Indian rupee outperformed among the regional currencies following month-end rebalancing inflows and recovery in risk assets on the expectation of inflows. Most of the Asian currencies firmed after a sharp drop on Monday,” said Dilip Parmar, Research Analyst, HDFC Securities.
Parmar further said that the rupee registered the biggest one-day gains after July 29, and Tuesday’s move affirms the short-term reversal in the trend and “we could see further appreciation towards 79.20 and 78.70 while breaking of 79.80 will negate the said view,” he said.
“Suspected dollar inflow in debt segment is keeping the rupee supported. Hawkish comments from the Fed governor kept the dollar supported at lower level,” Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services said.
On the domestic equity market front, the BSE Sensex ended 1,564.45 points or 2.70 per cent higher at 59,537.07 points, while the broader NSE Nifty gained 154.10 points or 0.89 per cent to 17,467.00.
Foreign institutional investors turned net buyers in the capital market on Tuesday, buying shares worth Rs 4,165.86 crore, as per exchange data.


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