Rupee Spurts By 42 Paise Against U.S. Dollar

Story Highlights
  • Rupee spurted by 42 paise to close at a nearly two-week high.
  • The Rupee appreciated against U.S. dollar taking cues from stronger Asian currencies.
  • BSE Sensex ended 1,039.80 points

Mumbai: The rupee spurted by 42 paise to a nearly two-week high of 76.20 against the U.S. dollar on Wednesday, tracking positive domestic equities and Asian currencies ahead of the U.S. Federal rate hike decision. At the interbank forex market, the local unit opened at 76.40 against the greenback and witnessed an intra-day high of 76.19 and a low of 76.44. The rupee quoted at 76.20, registering a rise of 42 paise over its previous close of 76.62.

“Rupee appreciated against U.S. dollar taking cues from stronger Asian currencies and risk-on moods. Forex markets are a little tepid ahead of Wednesday’s Fed decision while U.S. 10-year bond yields retraced after touching 2.20 %, the highest level since 2019,” said Dilip Parmar, Research Analyst, HDFC Securities. The U.S. Federal Reserve is likely to raise rates by 25bps, as well as penciling further such hikes this year amid higher inflation. Spot USDINR could find support in the range of 76 to 75.70, while resistance is around 76.70, Mr Parmar added.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.38 % to 98.72. Brent crude futures, the global oil benchmark, advanced 1.14 % to $ 101.05 per barrel. On the domestic equity market front, the BSE Sensex ended at 1,039.80 points or 1.86 % higher at 56,816.65, while the broader NSE Nifty surged 312.35 points or 1.87 % to 16,975.35. Foreign institutional investors were net sellers in the capital market on Tuesday, as they offloaded shares worth ₹ 1,249.74 crores, as per stock exchange data.

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