Rupee snaps 4-day losing streak, closes 43 paise higher at 74.31/USD

MUMBAI: The rupee snapped its four-day losing streak to settle 43 paise higher at 74.31 (provisional) against the US dollar on Monday, tracking a firm trend in the domestic equity market.

At the interbank forex market, the local unit opened at 74.51 against the greenback and witnessed an intra-day high of 74.00 and a low of 74.55. It finally ended at 74.31 against the American currency, registering a rise of 43 paise over its previous close. On Friday, the rupee had settled at 74.74.

"India's rupee is the biggest gainer today, leading emerging Asian currencies higher, as risk appetite got a boost after a US jobs report disappointed dollar bulls. Domestic currency bounced back from four days of depreciation amid a broader risk-on sentiment and as COVID cases slows," said Dilip Parmar, Research Analyst, HDFC Securities.

Moreover, the expectation of foreign fund inflows this month also supported the rupee as there are 11 IPOs lined up, he said. "Near-term focus will remain on the movement of the dollar index, crude oil prices, and risk sentiments. From the level front, spot USDINR is having support at 73.60 and resistance at 75.10," he noted.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, dipped 0.08 per cent to 92.15. On the domestic equity market front, the BSE Sensex ended 395.33 points or 0.75 per cent higher at 52,880.00, while the broader NSE Nifty advanced 112.15 points or 0.71 per cent to 15,834.35.

Brent crude futures, the global oil benchmark, rose 0.37 per cent to USD 76.45 per barrel. Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 982.80 crore, as per exchange data.