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Rupee Rises 6 Paise To 74.58 Against US Dollar

According to exchange data, foreign institutional investors were net sellers in the capital market on Friday, offloading shares worth Rs 1,124.65 crore.

Rupee Rises 6 Paise To 74.58 Against US Dollar
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Rupee Rises 6 Paise To 74.58 Against US Dollar
outlookindia.com
2021-07-12T17:39:06+05:30

The rupee pared some of its initial gains to settle 6 paise higher at 74.58 against the US dollar on Monday, tracking gains in most regional currencies and possible inflows related to an upcoming IPO.

At the interbank forex market, the rupee opened at 74.49 and hit an intra-day high of 74.40 and a low of 74.59. It finally finished at 74.58, higher by 6 paise over its last close.

On Friday, the rupee had settled at 74.64 against the US dollar.

"Indian rupee remained under pressure as traders remained vigilant ahead of macroeconomic data. India CPI data is likely to show that inflation accelerated in June 2021 compared to the preceding month and remained above the RBI's target range of 2-6 percent for the second consecutive month," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

Further, market participants fear that a surge in COVID-19 cases in many parts of the world may hurt the global economic recovery, he added.

Brent crude futures, the global oil benchmark, fell 1.48 percent to USD 74.43 per barrel.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.16 percent to 92.28.

On the domestic equity market front, the BSE Sensex ended 13.50 points or 0.03 percent lower at 52,372.69, while the broader NSE Nifty inched 2.80 points higher or 0.02 percent to 15,692.60.

Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 1,124.65 crore, as per exchange data.

"The Indian Rupee appreciated for the second straight session on Monday against the dollar, tracking gains in most regional currencies and possible inflows related to an upcoming IPO," said Sriram Iyer, Senior Research Analyst, Reliance Securities.

In the last two trading sessions, the rupee has gained 13 paise against the US dollar.

Meanwhile, investors will look for cues from CPI and IIP data scheduled to be released after market hours. Moreover, US CPI and Federal Reserve Chairman Jerome Powell's testimony is also scheduled for this week.

"Technically, the USDINR Spot pair resistances are at 74.75 and 74.90. Supports are at 74.50 and 74.35. The USDINR Spot pair could trade in a range of 74.40-74.80 levels," Iyer said.

According to Jateen Trivedi, Senior Research Analyst at LKP Securities, "Rupee traded weak around 74.55 on back of dollar index strength, with overall resistance placed at 74.30-74.45 zones."

Crude prices traded soft which helped the rupee restrict losses beyond 74.60. Going ahead the rupee can be seen between 74.45-74.80 range on the back of dollar strength, Trivedi noted.

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