Rupee ends at over 2-month high against US dollar

The domestic currency opened at ₹72.49 to touch an intra-day high of ₹72.50 and a low of ₹72.32 to finish at ₹72.44 against the dollar, a level last seen on 23 March, registering a rise of 0.21% over its previous close of ₹72.59.

“Next week is going to be very eventful for rupee, with the RBI MPC (Reserve Bank of India Monetary Policy Committee) outcome and the US NFP (Nonfarm Payrolls) data. RBI MPC will continue to maintain its accommodative stance but the focus will be on the outlook of the central bank over the spill-over impact of the second wave of covid-19 on economic growth. So we can expect some volatility in spot forward of that. Technically, there has been a sharp fall in rupee spot and we expect the new trading vary to be ₹72-73.”mentioned Rahul Gupta, head of research- currency, Emkay Global Financial Services.

In the meantime, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.22% to 90.17.

Brent crude futures, the global oil benchmark, rose 0.37% to $69.72 per barrel.

On the domestic equity market front, the benchmark index, Sensex ended 307.66 points or 0.60% higher at 51,422.88, whereas the broader index, Nifty advanced 97.80 points or 0.64% to a record close of 15,435.65.

According to Jateen Trivedi, senior research analyst at LKP Securities: “Rupee traded weak on the back of subdued moves in the dollar index, Fed stance of dovish outlook keeps dollar weakness going. Higher crude prices kept the rupee rise at check around ₹72.50. With the capital market at lifetime highs, funds inflows keep rupee strength, going ahead rupee can be seen in range ₹72.40-72.80.”

Foreign institutional investors have net bought $5.81 billion in equities and net sold of $2.19 billion in debt since the beginning of calendar year, whereas domestic institutional investors sold ₹11,423.37 crore worth of stocks, according to data on the exchanges.

Among other Asian currencies, the Philippine Peso gained 0.41%, China’s Renminbi advanced 0.26%, South Korean Won was up 0.25%, Taiwanese Dollar surged 0.24%, and Malaysian ringgit jumped 0.18%. However, the Japanese Yen and Hong Kong Dollar fell 0.12% and 0.02%, respectively.