Rupee Appreciates 17 Paise To Settle At 72.60 Against Dollar Amid Positive Domestic Equities

The rupee appreciated 17 paise against the US dollar on Thursday, May 27, to settle at 72.60 (provisional), tracking positive domestic equities. At the interbank foreign exchange market, the domestic unit opened at 72.75 against the dollar and registered an intra-day high of 72.53. It registered a low of 72.76. In an early trade session, the local unit opened flat and inched higher by four paise to 72.73 against the greenback. The rupee closed at 72.60 against the dollar, recording a rise of 17 paise over its previous close.

On Tuesday, May 25, the domestic currency settled at 72.77 against the dollar. The forex market was closed on Wednesday, May 26, on account of Buddha Purnima. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.02 per cent to 90.02.

”Dollar Index has risen but there is no effect on rupee which is rising and is one of the best performing currency in the Region. It is expiry day in equity and currencies both which could create a bout of volatility. Exporters may sell above 73 while importers may buy between 72.65 and 72.75,” said Mr. Anil Kumar Bhansali, Head of Treasury – Finrex Treasury Advisors.

On the domestic equity market front, the BSE Sensex ended 97.70 points or 0.19 per cent higher at 51,115.22, while the broader NSE Nifty climbed 36.40 points or 0.24 per cent to 15,337.85.

”Due to the rebalancing of the FTSE index, the market remained heavily volatile on the day of monthly expiry of the F&O contracts. The Nifty once again gave buyers the opportunity to buy on dips. Nifty bounced from 15280 to 15380 in a row. The 15430 level is the previous highest and as of today’s formation, Nifty/Sensex bounced from 15280/50475 to 15380/50960 in a row,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

According to exchange data, the foreign institutional investors were net buyers in the capital market on May 26 as they purchased shares worth Rs 241.60 crore. Brent crude futures, the global oil benchmark, fell 0.78 per cent to $ 68.33 per barrel.