Rupee ends near two-month high against dollar
Premium- The rupee had opened at a stronger note on Friday following weakness in the greenback and improved risk appetite in global markets
MUMBAI: Rising for the second day in a row, the Indian rupee on Friday closed at a near two-month high against the US dollar, led by advances in domestic equities and due to a weak greenback.
The rupee closed at 72.84 against the US dollar today, a level last seen on 29 March. On Thursday, it had ended at 73.11.
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Rahul Gupta, head of research- currency, Emkay Global Financial Services, said, "Overall the sentiments are quite risk-on amid economic revival and reopening of the Western countries. Also, in India the improving trend of moderation in daily new Covid cases is boosting risk sentiments."
"...So forex traders will monitor the covid situation and trend in dollar, and keep the spot within 72.50-73.50 with a negative bias," he added.
Meanwhile, the dollar index, which gauges the strength of the greenback against a basket of six currencies, fell 0.16% to 89.67.
The rupee had opened at a stronger note on Friday following weakness in the greenback and improved risk appetite in global markets, Reliance Securities said in a research note.
"The US dollar index has started weaker this morning in Asian trade and could be heading for a weekly loss, as traders' initial concerns at taper talk in Federal Reserve minutes receded and while pandemic recovery boosted other currencies," the Reliance Securities' note said.
The BSE Sensex closed 975.62 points or 1.97% higher today at 50,540.48, while the broader NSE Nifty advanced 269.25 points or 1.81% to settle at 15,175.30.
Foreign institutional investors have net bought $5.40 billion in equities and net sold of $2.09 billion in debt since the beginning of calendar year, while domestic institutional investors sold Rs10,474.98 crore worth of stocks, according to data on the exchanges.
Brent crude futures, the global oil benchmark, rose 1.31% to $65.96 per barrel.
Among othAsian currencies, South Korean won gained 0.46%, Indonesian rupiah was up 0.14% and Malaysian ringgit advanced 0.14%. However, the Thai baht fell 0.45%.
(PTI contributed to the story.)
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