Gradual reopening of the economic activities, including air and train travel, strengthened the rupee feeling, forex traders said.
However, the rupee witnessed high volatility during the trading session as positive domestic stocks supported the local unit, while foreign fund outflows and concern over coronavirus outbreaks weighed on the greenback, they added.
In the interbank foreign exchange market, the rupee opened strongly at 75.70, which gained further to finally settle at 75.61, registering an increase of 19 paise over its previous close.
On Wednesday, the rupee had settled 75.80 against the US dollar. During the session, the local unit was aware of a high of 75.61 and a low of 75.82.
The 30-share BSE Sensex rose for the third day in a row, offsetting 114.29 points, or 0.37 percent, up to 30,932.90. The wider NSE Nifty advanced 39.70 points, or 0.44 percent, to 9,106.25 as investors took heart from the gradual resumption of economic activity.
“Indian rupee appreciated in anticipation of dollar inflow. So far this month, FIIs have bought shares worth $ 1.09 billion. Strength of domestic equities and light liquidity conditions supported the rupee,” said Devarsh Vakil, Head Advisory, HDFC Securities of.
Vakil further said that foreign exchange markets will keep an eye on the Chinese Yuan in the near term as China’s National People’s Congress meets and decides stimulus to support the economy.
According to Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities, “appreciated the rupee” as some overseas inflows to local stocks were witnessed amid a weak greenback, foreign banks were selling dollars as FII inflows to local equities brought gains in rupee “.
Meanwhile, the dollar index, which measures the strength of the greenback against a six-currency basket, traded 1.16 percent up to 99.28.
Brent crude, the global oil benchmark, rose 1.71 percent to $ 36.36 per share. Barrel.
Financial Benchmark India Private Ltd (FBIL) set the reference rate for rupee / dollar at 75.6712 and for rupee / euro at 82.8060. The reference level for rupee / British pound was set at 92.6432 and for rupee / 100 Japanese yen at 70.21. PTI DRR MR
Disclaimer: – This story is not edited by Outlook staff and is automatically generated from news agency feeds. Source: PTI