Rupee recovers 10 paise to end at 73.50

The rupee snapped its three-day losing streak to close 10 paise higher at 73.50 against the US dollar on Thursday following recovery in the domestic equities and losses in the dollar in overseas markets ahead of the European Central Bank's policy meeting.

After opening lower at 73.77, the rupee had dropped to a low of 73.85 in day trade due to higher oil prices.

However, the local unit recovered from lows following gains in equities and the US dollar reversing its three-day rise in overseas markets.

The rupee ended at 73.50, registering a rise of 10 paise over its previous closing. In the previous session, the rupee had settled at 73.60 against the US dollar.

"The local unit had briefly weakened to an intraday low of 73.85, its lowest in almost two weeks, but recouped losses on exporters’ dollar sales and corporate greenback flows," Sriram Iyer, Senior Research Analyst at Reliance Securities said.

On weekly basis, the rupee declined by 0.66 per cent or 48 paise as the dollar recovered from its month's low levels.

For the week, the rupee was weak against the US dollar on importer hedging and a consistent rise in the dollar index, Iyer said.

"Rupee gained strength from higher levels near 73.85 as profit-booking by bulls in USDINR near and before 74.00 levels, helping rupee cover 0.30 points from a high point.

"Positive trigger on vaccine drive along with LIC IPO updates kept positive movement with liquidity on Equities. Rupee range ahead can be seen between 73.40-74.80," said Jateen Trivedi, Senior Research Analyst at LKP Securities.

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