Rupee slips 3 paise to close at 74.57 against US dollar

04:21 PM Jul 16, 2021 | FPJ Web Desk

The Indian rupee slipped 3 paise to settle at 74.57 (provisional) against the US dollar on Friday, as investors awaited fresh triggers.

At the interbank forex market, the local unit opened at 74.53 against the greenback and witnessed an intra-day high of 74.51 and a low of 74.66 during the session.


The local unit finally ended the day at 74.57, down 3 paise over its last close.


On Thursday, the rupee had settled at 74.54 against the US dollar.

Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd. said, "The last two weeks have seen volatility compress in USDINR. In fact, the intra-week price range in USDINR was lowest since early August 2020. On one hand, RBI was rumored to have been buying quite aggressively under 74.50 on spot but on the other hand, record FPI flows in the Zomato IPO and FDI inflows did not let USD-INR move above 74.65 levels.

"Volatility expansion is natural once USD-INR gets coiled in a low volatile range for some time. With FPIs shying away from the secondary market and IPO season entering a lull, USD-INR may converge to a higher US Dollar Index. A Bit of risk-off is needed in equity markets to trigger a move towards 75.00 levels in the coming days."

The forex market focus will be on the US retail sales data and consumer confidence data for any reading on inflation and the strength of the recovery, said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services, PTI said.

"Any solid pace of US economic recovery will underpin the rumours of earlier than expected rate hikes/quantitative easing (QE) tapering keeping USD/INR afloat till the July Federal Open Market Committee (FOMC) outcome," Gupta, added

"So, in USD/INR spot until the support of 74.40 doesn't break, the trend will remain towards 75. Only a break of 74.40 will push prices towards 74.00 zone," he said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.06 percent to 92.56.

On the domestic equity market front, the BSE Sensex ended 18.79 points or 0.04 percent lower at 53,140.06, while the broader NSE Nifty declined 0.80 points or 0.01 percent to 15,923.40.

Global oil benchmark Brent crude futures advanced 0.37 per cent to $73.74 per barrel.

Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 264.77 crore, as per exchange data

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