Finance
The rupee gained 57 paise against the US dollar on Tuesday, reaching 81.78 (provisional) for the first time since November.
According to forex traders, the rupee has been the best performer among Asian currencies, and it now has a support level of 81.70.
The local currency opened at 82.20 against the US dollar on the interbank foreign exchange market, reaching an intraday high of 81.72 and a low of 82.26.
It eventually closed at 81.78 (provisional), up 57 paise from the previous close.
On Monday, the rupee settled at 82.35 against the US dollar.
The dollar index, which measures the strength of the US currency against a basket of six currencies, rose 0.12% to 103.12.
The rupee became the best performer among the Asian currencies following stop order triggers and inflows from bond selling, said Dilip Parmar, Research Analyst, HDFC Securities.
“The local unit witnessed the biggest single-day gains after November 11 and broke the psychological level of 82 as the traders rushed to cover the positions,” Parmar said.
Parmar further noted that Spot USD/INR now has the support of 81.70, “the 50 per cent Fibonacci retracement adjoining the November 14 low of 80.51 and the January 03 high of 82.94. The near-term view remains bearish for the pair and a level below 81.70 will pave way for 81.45 while on the higher side 82.10 acts as resistance”.
The 30-share BSE Sensex fell 631.83 points, or 1.04 percent, to end at 60,115.48, while the broader NSE Nifty fell 187.05 points, or 1.03 percent, to 17,914.15.
Brent crude futures rose 0.13 percent to USD 79.75 per barrel, the global oil benchmark.
According to exchange data, Foreign Institutional Investors (FIIs) were net sellers in the capital market on Monday, offloading shares worth Rs 203.13 crore.
Source:BS
