Rupee extends gains by 5 paise to end at over 2-week high against dollar

The Rupee appreciated by five paise to settle at more than two-week high of 74.11 against the US dollar on Monday tracking positive domestic equities and weak American currency.

At the interbank forex market, the domestic unit traded in a narrow range as rising COVID-19 cases offset positive sentiments surrounding the progress on the vaccine front.

AstraZeneca on Monday said that late-stage trials of its COVID-19 vaccine were “highly effective” in preventing disease.

A vaccine developed by AstraZeneca and the University of Oxford prevented 70 per cent of people from developing the coronavirus in late-stage trials.

The Rupee opened at 74.12 against the US dollar and touched a high of 74.04 and a low of 74.22 in day trade.

The Rupee finally settled at 74.11 -- the highest closing level since November 6 -- with gains of 11 paise. On Friday, the local unit had settled at 74.16 against the greenback.

“Rupee traded in a range after opening strong on the back of a weak dollar index. The tight range of 74.00-74.45 remains, on back of awaited stimulus deals from the US. Crude prices scaling high give some support to USDINR as it keeps holding 74.00,” said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.23 per cent to 92.17.