Rupee spurts 32 paise to 72.93, ends three-day losing streak

Ending its three-day losing run, the on Tuesday spurted by 32 paise to close at 72.93 against the on the back of a rally in domestic stocks and the greenback retreating from three-month highs in global

Expectations of a swift economic rebound, a fall in US bond yields, and global fiscal policies improved the risk appetite and supported the local unit, analysts said.

At the interbank forex market, the local unit opened at 73.16 against the greenback and witnessed an intra-day high of 72.91 and a low of 73.25. It finally ended at 72.93 against the American currency, registering a rise of 32 paise over its previous closing.

In the past three sessions to Monday, the local currency had dropped by 53 paise or 0.73 per cent amid rising US bond yields and a stronger dollar.

Foreign institutional investors were also net sellers in the capital market as they offloaded shares worth Rs 1,494.49 crore on Monday, according to exchange data.

traded strongly above 73.00 as dollar index retraced some of its rally witnessed in the last few days. The dollar index which is traded around USD 92.4 retraced back to USD 91.90 giving the Indian positive momentum, along with stable financial market participation,” said Jateen Trivedi, Senior Research Analyst at LKP Securities.

Trivedi further said that going ahead the rupee can be seen trading between 72.70-73.15.

Meanwhile, Brent crude futures, the global oil benchmark, rose 0.59 per cent to USD 68.64 per barrel. On the domestic equity market front, the BSE Sensex ended 584.41 points or 1.16 per cent higher at 51,025.48, while the broader NSE Nifty advanced 142.20 points or 0.95 per cent to 15,098.40.

“The Indian Rupee appreciated against the US Dollar, supported by strong local equities and the dollar index retreating from over three-month highs,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.

Further, global fiscal policies, as well as hopes of a swift economic rebound, have improved risk appetite and continued to lend support to the local unit, Iyer added.

will now look ahead to the US consumer price index data due Wednesday and the producer price index print scheduled for release on Friday.

On the domestic front, the CPI and IIP numbers will also be keenly awaited, traders said.

According to Dilip Parmar, Research Analyst, HDFC Securities, Indian rupee after three days of downward momentum gained on Tuesday as US Treasury yields along with dollar declines.

“Volatility continues to be elevated in the financial market as rotation continues to unfold. Witha rise in US bond yields funds outflow can be seen from the emerging to US tracking higher real rate,” Parmar said adding that “rupee is taking cues from broad-based dollar movement, crude oil prices and foreign inflows”.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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