Money & Banking

Rupee settles 26 paise higher at 73.12 against dollar; logs over 3 per cent gain in FY21

PTI Mumbai | Updated on March 31, 2021

The rupee closed higher by 26 paise at 73.12 (provisional) against the US dollar on Wednesday and ended the fiscal on a strong note with a gain of over 3 per cent despite coronavirus-induced disruptions on the economic front.

At the interbank forex market, the local unit opened at 73.56 against the greenback and witnessed an intra-day high of 73.05 and a low of 73.58.

It finally ended at 73.12 against the American currency, registering a rise of 26 paise over its previous closing. On Tuesday, the rupee had settled at 73.38 against the American currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.10 per cent to 93.20.

Forex traders said market participants remained cautious as the currency markets will remain shut for the next two sessions. The Indian markets will be closed on Thursday and Friday for annual bank closing and Good Friday holiday respectively.

 "Despite a truncated week, the forex market has been very volatile. The spot breached 73 on the back of an uptrend in dollar. The market focus is on Biden's additional stimulus announcement and an additional spending boost will further support the dollar rally," said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.

Gupta further noted that "the best thing to do for now is to follow the trend and let the market tell you where it's going to end. In USDINR spot we expect the trading range to be 72.50-73.50." Meanwhile, Brent crude futures, the global oil benchmark, fell 0.48 per cent to $63.83 per barrel.

 On the domestic equity market front, the BSE Sensex ended 627.43 points or 1.25 per cent lower at 49,509.15, while the broader NSE Nifty declined 154.40 points or 1.04 per cent to 14,690.70.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 769.47 crore on Tuesday, according to exchange data.

 

 

 

 

The Indian rupee slumped 20 paise to 73.58 against the US dollar in opening trade on Wednesday, weighed down by the strength of the greenback and weak domestic equities.

At the interbank forex market, the domestic unit opened at 73.56 against the US dollar, then fell further to 73.58, registering a fall of 20 paise over its previous close.

On Tuesday, the rupee had settled at 73.38 against the American currency.

Most of the Asian currencies were weak this Wednesday morning and will weigh on sentiments, traders said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.13 per cent to 93.41.

"The US dollar was flat to higher against the basket of currencies this Wednesday morning in Asian trade as investors bet that massive fiscal stimulus and aggressive vaccinations will help the US lead a global pandemic recovery," Reliance Securities said in a research note.

On the data front, the government is likely to announce borrowing plan for April-September. Additionally, the government is scheduled to release April-February fiscal deficit data. RBI is also likely to release October-December current account data, the note added.

In the domestic equity market, the 30-share BSE benchmark Sensex was trading 422.74 points lower at 49,713.84, and the broader NSE Nifty fell 96.85 points to 14,748.25.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth ₹769.47 crore on Tuesday, according to exchange data.

Brent crude futures, the global oil benchmark, rose 0.48 per cent to $64.45 per barrel.

Published on March 31, 2021

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