Mumbai, Dec 28 (PTI) Rising for the ninth straight session, the rupee surged 30 paise to close at a one-month high of 74.70 against the US dollar on Tuesday, tracking positive domestic equities and a weak greenback in the overseas market.
However, Omicron worries and firm crude oil prices restricted the appreciation bias of the local unit to some extent.
At the interbank forex market, the local unit opened at 74.95 against the greenback and witnessed an intra-day high of 74.60 and a low of 74.95. Its finally settled at 74.70, registering a rise of 30 paise over the last close.
In the previous session, the rupee rose 3 paise to 75 against the US dollar.
Over the last nine sessions, the domestic currency has gained 162 paise against the greenback.
Positive moves in Indian equity indices aided sentiments, forex traders said, adding that trading is likely to remain range-bound this week ahead of the year-end holidays.
“Rupee outperformed among Asian currencies following risk-on sentiments and the weaker dollar index. It has been up for the ninth day in trot as state-run banks remain sellers on behalf of exporters. Forex markets volume remains thin in light of the new year holiday,” said Dilip Parmar- Research Analyst, HDFC Securities.
Parmar further noted that the “near-term outlook for USD/INR remains bearish and we could see a level of 74.50 in the next couple of days while resistance has been shifted to 74.90”.
“In the last few sessions, movement in the rupee has been led by RBI intervention and weakness in the dollar index. Most market participants have been on the sidelines on account of Christmas and New Year holidays suggesting that the move has been on the back of thin volumes,” said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.
Somaiyaa further noted that “this week, on the global front, no major economic data is expected to be released and on the domestic front focus will be on the fiscal number. We expect the USD/INR (Spot) to quote in the range of 74.40 and 75.20”.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the Indian Rupee appreciated against the US Dollar as dollar sales by foreign banks on behalf of exporters and receding concerns over the impact of the Omicron coronavirus strain aided risk sentiment.
Additionally, renewed buying in global equities in holiday-thinned trading has also aided domestic markets.
On the domestic equity market front, the BSE Sensex ended 477.24 points or 0.83 per cent higher at 57,897.48, while the broader NSE Nifty advanced 147 points or 0.86 per cent to 17,233.25.
Meanwhile, the dollar index, which measures the greenback’s strength against the basket of six currencies, fell 0.08 per cent to 96.02.
Brent crude futures, the global oil benchmark, rose 0.57 per cent to USD 79.05 per barrel.
Foreign institutional investors remained net sellers in the capital market on Monday, as they offloaded shares worth Rs 1,038.25 crore, as per stock exchange data.
