Rupee extends 6paise gains to 74.28 following rally in shares

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Mumbai, Aug 3 (PTI) The rupee rose 6 pais to close at 74.28 against the US dollar on Tuesday following strong gains in domestic stocks and weakness in the US currency.

The rupee is moving within a narrow range ahead of the Reserve Bank of India (RBI) policy decision and the release of US non-farm payroll data on Friday, traders said.

In the interbank forex market, the local unit opened at 74.36 against the greenback and saw an intraday high of 74.21 and a low of 74.36.

It ultimately finished at 74.28 against the US dollar, posting a 6 paise rise from its previous close. On Monday, the rupee stood at 74.34 against the US dollar.

The rupee continued to rally today, albeit calmly against domestic stocks which have reached a lifetime high. Foreign currency markets also remained lackluster, with G10 currencies trading in a narrow range on thin volumes, ”said Dilip Parmar, research analyst, HDFC Titles.

Going forward, the focus will remain on the RBI’s monetary policy. Primary market entries will remain robust and the rupee is expected to trade with a positive bias in the near term, Parmar added.

Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.07 percent to 91.98.

On the national stock market front, the BSE Sensex finished up 872.73 points or 1.65% at 53,823.36, while the broader NSE Nifty index rose 245.60 points or 1 , 55% at 16,130.75.

Futures on Brent crude, the world’s benchmark for oil, rose 0.80% to $ 73.47 per barrel.

Meanwhile, foreign institutional investors were net sellers in the capital market on Monday as they dumped shares worth Rs 1,539.88 crore, exchange data showed.

“The Indian rupee appreciated slightly for the second consecutive session against the US dollar, following the gains of local stocks and a weak dollar,” said Sriram Iyer, senior research analyst at Reliance Securities.

At the same time, the local unit also benefited from the strengthening of regional currencies.

The dollar index was stable to slightly weaker on Tuesday, but remained in tight trading ranges as traders hesitated to take strong positions ahead of the release of key US jobs data at the end of the week, said Iyer.

The rupee has consolidated within a narrow range but traded with a slight appreciation bias following large gains in domestic stocks. Market participants remain cautious ahead of important RBI policy statement expected this week, “said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.

The central bank is expected to maintain an accommodative stance and this could limit any significant gains for the currency.

“We expect the USDINR (Spot) to trade sideways with a negative bias and quote between 74.05 and 74.50,” Somaiyaa added. PTI DRR MR


Warning :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI


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