Rupee Gains To 73.78 Against Dollar Amid Positive Domestic Equities

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Rupee Gains To 73.78 Against Dollar Amid Positive Domestic Equities

Rupee Vs Dollar Today: The rupee settled at 73.78 against the dollar

The rupee appreciated 13 paise against the US dollar on Thursday, May 6, to settle at 73.78 (provisional) amid positive domestic equities and a weaker American currency. At the interbank foreign exchange market, the domestic unit opened at 73.87 against the dollar and registered an intra day high of 73.77. It witnessed a low of 74. In an early trade session, the local unit gained seven paise to 73.84 against the greenback. The currency closed at 73.78 against the dollar, recording a rise of 13 paise over its previous closing.

On Wednesday, May 5, the local unit settled at 73.91 against the greenback. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped  0.30 per cent to 91.03.

”$ rupee got sold off yesterday as premiums fell from their peak as nationalized banks received the premiums possibly on behest of RBI. Still the carry cost being high $ rupee is getting sold on good uptics. Yesterday it was sold off at 74.04. 73.80 is being supported by RBI while covid cases still continue to be on the higher side,” said Anil Kumar Bhansali, Head of Treasury, Finrex.

”The USD/INR pair started the day slightly lower at 73.85, similar to the previous day’s close. The increase in the dollar index has halted the currency pair’s downtrend amid fears of a short-term second lockdown 2.0, which could occur in the near future,” said Kshitij Purohit, Lead International Products & Commodities at CapitalVia Global Research Limited.

On the domestic equity market front, the BSE Sensex ended 272.21 points or 0.56 per cent higher at 48,949.76, while the broader NSE Nifty advanced 106.95 points or 0.73 per cent to 14,724.80.

”On the day of the weekly expiry of index options, Nifty/Sensex closed at the highest point of the day.  Today, Auto and Technology stocks lifted the market sentiment heavily. Due to the follow-up buying, we saw a recovery in the metal stocks from lower levels,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

”In brief, we need to be careful to add long positions at higher levels.  On the downside, 14600/48600 and 14500/48300 would be major supports.  The bank-nifty is consolidating and in the medium term a close above the levels of 33000,” he added.

According to exchange data, the foreign institutional investors were net sellers in the capital market on May 5 as they sold shares worth Rs 1,110.50 crore. Brent crude futures, the global oil benchmark, fell 0.33 per cent to $ 68.73 per barrel.

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