Rupee Vs Dollar: The rupee is down 4.74% against the dollar so far this year
The rupee gained by 17 paise - or 0.23 per cent - to close at 74.74 against the US dollar on Tuesday. It moved within a range of 14 paise between 74.73 and 74.87 against the greenback, having started the day stronger at 74.79 compared to its previous close of 74.91. At the current level, the rupee has recovered 2.82 per cent from a record low of 76.91 logged in April, but is still down 4.74 per cent against the greenback so far this year.
Gains in domestic share markets, which jumped to fresh four-month highs, and a weaker dollar overseas supported the rupee, say analysts. (Also Read: Analysts Expect Rupee To Stay Near 74 In Near Term)
Equity benchmarks Sensex and Nifty extended gains to the fifth session in a row to register their highest closing levels recorded since March 5, as hopes for a COVID-19 vaccine being available as early as this year offset fears over surging domestic coronavirus cases.
The dollar index - which measures the US currency against six peers - was last seen trading 0.17 per cent lower, having fallen as much as 0.22 per cent earlier on Tuesday.
Analysts expect the rupee to stay close to the current levels in the near term.
"In the recent days, the bias for the rupee has turned towards appreciation as the (USD-INR) pair remains well supported by persistent inflows and sentiments turning positive amid the hopes of a vaccine... It is likely that the pair could move near 74.50 levels in the next few sessions, which if taken out, will be an indication to trend change," said Amit Pabari, managing director at CR Forex Advisors, a forex advisory firm.
"However, if the Reserve Bank of India intervenes as last time, the pair is likely to bounce back near the 75.00 territory. Overall, if the range of 74.50-75.50 is broken, we could see sharp moves in the rupee," he added.
