Rupee Gains 11 Paise To Settle At 72.35 Against Dollar

The rupee gained 11 paise against the US dollar on Wednesday, February 24, to settle at 72.35 (provisional), supported by positive domestic equities and weakness in the American currency. At the interbank foreign exchange market, the domestic unit opened at 72.35 against the dollar and witnessed an intra-day high of 72.26. It registered a low of 72.41. In an early trade session, the local unit gained 13 paise to 72.33 against the greenback. The rupee ended at 72.35 against the American currency, registering a rise of 11 paise from its previous close. On Tuesday, February 23, the local unit had settled at 72.46 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.10 per cent to 90.08. ”Opening around 72.35 dollar is expected to remain in a range of 72.20/50 with RBI standing in between to prevent the Rupee appreciation and all others on the selling side. Today is monthly close also so a good volatility can be expected between 11.30 to 12.30. Exporters just sell near to 72.50 and importers just buy for near term at 72.25/30,” said Anil Kumar Bhansali, Head- Treasury, Finrex Treasury Advisors. 

On the domestic equity market front, the BSE Sensex was trading 191.39 points or 0.38 per cent higher at 49,942.80. BSE said its equity and equity derivatives markets will remain open till 5 pm on Wednesday.

”The market continues to witness a lack of momentum and stayed between 14650 to 14850 (Nifty 50 Index). As of now, the market’s short-term technical condition appears like a short-term correction is in the process. While it is subject to further price action evolution, it is prudent to wait for a decisive breakout above 14850 before considering the short-term correction has over. Once this level is met, the market to gain momentum, leading to an upside projection till the 15250 levels,” said Ashis Biswas, Head of Technical Research at CapitalVia Global Research Limited.

According to exchange data., the foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 1,569.04 crore on February 23. Brent crude futures, the global oil benchmark, rose 0.76 per cent to $ 65.87 per barrel.