Rupee pares early gains, settles 9 paise lower at 73.58 against US dollar

PTI Mumbai | Updated on October 21, 2020

The rupee pared its initial gains and depreciated 9 paise to settle at 73.58 (provisional) against the US dollar on Wednesday, as heavy selling in domestic equities weighed on investor sentiment.

At the interbank forex market, the domestic unit witnessed a highly volatile trading session. It opened at 73.39, pared the gains and finally closed at 73.58 against the greenback, registering a decline of 9 paise over its previous close of 73.49.

During the session, the local unit saw an intra-day high of 73.36 and a low of 73.62 against the American currency.

“Market sentiments are hinged on to the US fiscal stimulus negotiations. There is a potential for a stimulus bill but at the same time there is a lot of caution on the back of it,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

Gupta further said that “the election event volatility is yet to begin and the USD-INR spot is respecting the strong support of 73. Until it trades above that, prices will remain in between 73-73.60“.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.34 per cent down at 92.74.

Published on October 21, 2020

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