Rupee logs first gain in 5 days, ends 6 paise higher

Image used for representational purpose only. File

Image used for representational purpose only. File

The rupee snapped its four-session losing run on Thursday to close 6 paise higher at 73.33 against the U.S. dollar amid hopes that efforts by countries and global agencies would offset financial damage from the novel coronavirus (COVID-19) outbreak.

Besides, easing crude oil prices and weakness in the dollar vis-a-vis other key global currencies also helped the rupee build resistance.

At the interbank foreign bank exchange, the domestic unit opened on a positive note, but soon gripped by an intense volatility. During the session, the rupee swung between a high of 73.04 and a low of 73.56 against the American unit.

It finally settled at 73.33, showing a rise of 6 paise over its previous close.

Global crude oil benchmark Brent Futures dropped 1.16% to $50.91 per barrel.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.27% to 97.07.

The IMF on Wednesday said it will make available about $50 billion through its rapid-disbursing emergency financing facilities for low income and emerging market countries that could potentially seek support on account of COVID-19.

Back home, the RBI has also said it is closely monitoring global as well as domestic situation regarding the impact of the virus and ready to take necessary action to ensure orderly functioning of financial markets.

On the equity market front, the BSE benchmark Sensex settled 61.13 points or 0.16% higher at 38,470.61; and the broader NSE Nifty rose 18 points or 0.16% to finish at 11,269.

“Rupee opened weak near 73.40 and saw weakness towards 73.55, but witnessed strength there after strongly towards 73.05 zone. The strength was witnessed due to overseas investors increasing their holding in Indian stocks at some point,” said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.

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Printable version | Oct 1, 2022 1:43:58 pm |