Rupee scales over 2-month peak at 72.60 against US dollar

Mumbai:The Indian rupee advanced by 17 paise to climb to over two-month high of 72.60 against the US dollar on Thursday, tracking upbeat Asian peers and positive domestic equities.

At the interbank forex market, the local unit opened at 72.75 against the greenback and witnessed an intra-day high of 72.53 and a low of 72.76.

It finally ended at 72.60 against the American currency, registering a rise of 17 paise over its previous close.

On Tuesday, the rupee had settled at 72.77.

Forex market was closed on Wednesday on account of Buddha Purnima.

“The Indian rupee appreciated for the second straight session against the dollar, tracking gains in the Chinese Yuan. The Reserve Bank of India (RBI) also remained away from the spot market from accumulating dollars and this also aided the rupee’s gain,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

According to Dilip Parmar, Research Analyst, HDFC Securities “The Indian rupee appreciated another 17 paise to 72.60 a dollar amid month end adjustment and inflows from MSCI rebalancing.

“Higher carry trade, lower volatility, absence of central bank intervention and risk-on sentiments supported rupee gains. Going ahead Asian currencies trend deciding factor could be China’s Yuan which rises to strongest level since 2016 in Thursday’s trade,” Parmar said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.02 per cent to 90.02.

Brent crude futures, the global oil benchmark, fell 0.78 per cent to USD 68.33 per barrel.

On the domestic equity market front, the BSE Sensex ended 97.70 points or 0.19 per cent higher at 51,115.22, while the broader NSE Nifty advanced 36.40 points or 0.24 per cent to 15,337.85.

Foreign institutional investors were net buyers in the capital market on Wednesday as they purchased shares worth Rs 241.60 crore, as per exchange data.

Meanwhile, India’s COVID-19 infection tally climbed to 2,73,69,093 as 2,11,298 more people tested positive for the disease in a day, while the country’s recovery was recorded at 90 per cent, according to the Union Health Ministry on Thursday.