Rupee zooms 58 paise to settle at 74.35 against US Dollar

At the interbank forex market, the local unit opened at 74.76 against the greenback and witnessed an intra-day high of 74.28 and a low of 74.76.

The rupee strengthened by 58 paise to end at 74.35 (provisional) against the US dollar on Friday, supported by positive domestic equities amid improving risk appetite.

At the interbank forex market, the local unit opened at 74.76 against the greenback and witnessed an intra-day high of 74.28 and a low of 74.76.

It finally ended at 74.35 against the American currency, registering a rise of 58 paise over its previous closing. On Thursday, the rupee had settled at 74.93 against the American currency.

“Indian Rupee gained strength amid weakness in dollar and rise in risk appetite in the domestic markets,” said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

Mukadam further noted that dollar dipped on extended decline in US treasury yields. “US treasury yields fell as US Federal Reserve policy-makers signaled that central bank is not in hurry to reduce its support,” he said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.09 % to 91.59.

According to Mukadam, further gains for the local unit were prevented on surge in crude oil prices and on concern that rising COVID-19 cases in India and lockdown restriction in some states may hurt economic recovery.

Meanwhile, Brent crude futures, the global oil benchmark, rose 0.40 % to USD 67.21 per barrel.

On the domestic equity market front, the BSE Sensex ended 28.35 points or 0.06 % higher at 48,832.03, while the broader NSE Nifty advanced 36.40 points or 0.25 % to 14,617.85.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth ₹979.70 crore on Thursday, according to exchange data.

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