Rupee Vs Dollar: The rupee is down 5% against the dollar so far this year
INR Vs USD: The rupee gained by as much as 22 paise - or 0.29 per cent - to 75.04 against the US dollar, amid strength across most Asian currencies. The domestic currency moved within a range of 13 paise between 74.82 and 74.95 against the greenback during the four-hour session, before settling at 74.93 for the day. The rupee had started the day stronger at 74.93 compared to its previous close of 75.04. Gains in domestic equity markets and weakness in the dollar overseas supported the rupee, say analysts.
Domestic stock markets extended gains, driven by banking and metals stocks, as a series of encouraging earnings reports spurred optimism about a pick up in business activity.
The BSE S&P Sensex index rose as much as 1.20 per cent to 38,139.96 during the session, and the broader NSE Nifty 50 benchmark climbed 1.18 per cent to 11,225.65.
Analysts awaited the outcome of the Reserve Bank of India's policy review due on Thursday.
Meanwhile, crude oil prices rose on Wednesday after inventory data showed a big drop in US crude stocks although gains were capped by concerns over fuel demand with mounting global COVID-19 cases. Brent crude futures - the global benchmark for crude oil - were last seen trading 0.70 per cent higher at $44.74 per barrel.
The dollar index - which measures the US currency against six peers - was down 0.35 per cent, having fallen as much as 0.39 per cent earlier on Wednesday.
"The weakness in dollar is weighing on the USD-INR spot pair, which is trading in an indecisive market. Tomorrow's RBI policy is the major trigger this week. We expect a repo rate cut of 25 bps (basis points) and an absence of rate cut may weigh on the rupee," said Rahul Gupta, head of research-currency at Emkay Global Financial Services.
"74.75 is acting as an immediate support. A break of 74.75 will push spot towards 74.50 while 75.50 will act as a crucial resistance," he said.
At Wednesday's close of 74.93, the rupee has recovered 2.57 per cent against the US dollar since an all-time low of 76.91 registered in April, but is still down 5 per cent so far this year.
