Forex

Rupee soars 43 paise to close at 73.39 against US dollar

Reuters MUMBAI | Updated on August 28, 2020 Published on August 28, 2020

The rupee strengthened 43 paise to end at 73.39 (provisional) against the US dollar on Friday supported by persistent foreign fund inflows and weak American currency.

At the interbank forex market, the domestic unit opened on a flat note but soon gained ground and finally ended at 73.39 against the greenback, higher by 43 paise over its previous close of 73.82.

During the day, the local unit touched an intra-day high of 73.29 and a low of 73.87.

Sustained foreign fund inflows, positive domestic equities and a weak US dollar further boosted the local unit, forex traders said.

“A sharp appreciation of 0.75 per cent has been witnessed in the rupee amid persistent portfolio inflows and as the domestic currency was eventually seen mirroring the decline in the dollar index,” said Sugandha Sachdeva VP-Metals, Energy and Currency Research, Religare Broking.

Sachdeva further said that “in the current scenario, the unfettered money printing drive by major central banks has fuelled the ‘risk-on’ trade-in markets even as the Covid-19 crisis rages on.”

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.72 per cent to 92.33.

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Published on August 28, 2020
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