The rupee extended its gaining streak for the fourth consecutive session as it ended the day with an appreciation of 57 paise against the dollar, backed by steady inflows and weakening of the dollar.
After opening at 75.17 a dollar compared to the previous close of 75.66, the rupee appreciated to 74.94 before closing at 75.09 to a dollar.
According to currency dealers, robust foreign fund inflows and positive mood in the domestic equity segment aided the gain of the currency, apart from weakness in dollar.
“Rupee ended at a one-month high on Thursday as overseas inflows into stocks rose on reports of a potential new treatment for COVID-19 created a buzz and boosted risk appetite, leading to rally in equities both in the U.S, and Asia,” said Jateen Trivedi, analyst at LKP Securities. The dollar index was trading 0.06% down at 99.50.
“The U.S. Federal Reserve kept key interest rates unchanged, but hinted it can [opt for] any measure to contain the economy which is why the dollar lost some gains in the overnight session in the U.S. Rupee has gained strength very rapidly from 77-75 in a matter of 7 trading sessions on the back of major positive cues of economic funding, COVID-19 treatments, and fewer cases in the last 10 days globally,” Mr. Trivedi said.
