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Rupee gains for second straight session, settles at 74.46 against dollar

04:26 PM Jul 22, 2021 | FPJ Web Desk

The rupee strengthened against the US currency for the second straight session on Thursday, closing 15 paise higher at 74.46 (provisional) amid a rally in domestic stocks.

At the interbank forex market, the rupee opened at 74.46, and hit an intra-day high of 74.33 and a low of 74.53. It finally finished at 74.46, higher by 15 paise over its last close.

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On Tuesday, the rupee had settled at 74.61 against the US dollar. Forex market was closed on Wednesday on account of Bakri Id.

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Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities, said, "Over this year, risk-off events have not been sustained beyond 24-48 hours. The last one was no exception. After a brief sell-off in global equity markets on Monday, the risk-on mood is back strongly. Equity markets are higher and the US Dollar Index is trading lower. Asian currencies are also gaining ground against the US Dollar. Add to that lumpy FDI flows.

The USD INR spot touched an intra-day low of 74.33, the lowest level since 5th July. However, alleged intervention from RBI pulled it back towards 74.47 by close of trading, still down 15 paise for the day.

"The USD INR July futures are also trading 16 paise up from their intra-day low of 74.36, currently at 74.51, down 19 paise for the day. All eyes on the ECB meeting tonight. Over the near-term, USD INR may continue to oscillate within a range of 74.20-74.60, bracketed by RBI's demand for $ and risk on mood globally", said Banerjee.

Brent crude futures, the global oil benchmark, rose 0.98 to USD 72.94 per barrel. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.01 per cent to 92.74.

On the domestic equity market front, the BSE Sensex ended 638.70 points or 1.22 per cent higher at 52,837.21, while the broader NSE Nifty advanced 191.95 points or 1.23 per cent to 15,824.05.

Meanwhile, foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 2,834.96 crore, as per exchange data.

(With PTI inputs)

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