Continuing its winning streak for the ninth straight session, the rupee gained 34 paise to settle at a one-month high of 74.70 against the US dollar on Tuesday, December 28, tracking positive domestic equities and a weaker dollar in the overseas market.
At the interbank foreign exchange market, the local unit opened at 74.95 against the greenback and registered an intra-day high of 74.60. It witnessed a low of 74.95. The rupee finally settled at 74.70, registering a rise of 30 paise over the last close.
However, Omicron worries and firm crude oil prices restricted the appreciation bias of the local unit to some extent.
In the previous session, the rupee rose 3 paise to 75 against the US dollar.
Over the last nine sessions, the domestic currency has gained 162 paise against the greenback.
Positive moves in Indian equity indices aided sentiments, forex traders said, adding that trading is likely to remain range-bound this week ahead of the year-end holidays.
Parmar further noted that the “near-term outlook for USD/INR remains bearish and we could see a level of 74.50 in the next couple of days while resistance has been shifted to 74.90”.
Additionally, renewed buying in global equities in holiday-thinned trading has also aided domestic markets.
On the domestic equity market front, the BSE Sensex ended 477.24 points or 0.83 per cent higher at 57,897.48, while the broader NSE Nifty advanced 147 points or 0.86 per cent to 17,233.25.
Meanwhile, the dollar index, which measures the greenback’s strength against the basket of six currencies, fell 0.08 per cent to 96.02.
Brent crude futures, the global oil benchmark, rose 0.57 per cent to USD 79.05 per barrel.
Foreign institutional investors remained net sellers in the capital market on Monday, as they offloaded shares worth Rs 1,038.25 crore, as per stock exchange data.
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