The rupee on Tuesday closed 6 paise higher at 79.92 (provisional) from its all-time low of 80.05 against the US dollar, tracking a positive trend in its regional peers and domestic equities. In the interbank forex market, the local unit opened against the greenback at 80.00 and intra-day lows fell further at 80.05.
The local unit later made losses and closed at 79.92 (Provisional), registering an increase of 6 paise from its previous close. The rupee on Monday fell to as low as 80 against the US dollar in intra-day spot trading for the first time on Monday, ending the session 16 paise lower at 79.98, amid spurt in crude oil prices and foreign fund outflow.
Dilip Parmar said, “Indian rupee breached 80 level after unsuccessful attempts by dollar bulls amid higher crude oil prices. However, central bank intervention and stronger regional currencies and equities to erase the morning’s losses Supported Rs. , Research Analyst, HDFC Securities.
Parmar further said that there is a possibility of near-term consolidation in the rupee with the dollar index ahead of the European Central Bank (ECB) and Bank of Japan policy meeting on Thursday. On the domestic equity market front, the BSE Sensex closed 246.47 points or 0.45 per cent higher at 54,767.62, while the broader NSE Nifty ended 62.05 points or 0.38 per cent higher at 16,340.55.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.66 per cent at 106.66. Global oil benchmark Brent crude futures fell 0.40 per cent to $105.84 per barrel. Foreign institutional investors were net buyers in the capital market on Monday as they bought shares worth Rs 156.08 crore, according to stock exchange data.
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