Rupee Gains To 72.87 Against Dollar Amid Foreign Fund Inflows, Subdued Domestic Equites

2021-02-09 12:09:47

Rupee Gains To 72.87 Against Dollar Even As Domestic Markets Restricted Gains

The rupee gained 10 paise against the US dollar on Tuesday, February 9, to settle at 72.87 (provisional) amid sustained foreign fund inflows and weaker American currency. However, surging crude prices as well as subdued domestic equity market hit the rupee sentiment and restricted the gain. At the interbank foreign exchange, the domestic unit opened sharply higher at 72.87 against the dollar. During the session, the local unit touched an intra day high of 72.85 and a low of 72.92. It settled at 72.87, registering a rise of 10 paise against the greenback. In the previous session, the rupee had slipped 4 paise to settle at 72.97 against the American currency.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.42 per cent to 90.57.


“Indian rupee gained strength amid weakness in Dollar and rise in risk appetite in the global markets. Market sentiments improved on the expectation that stimulus packages, easy monetary policies and progress in vaccination programme would boost economic growth. “Further, consistent FII inflows supported Rupee. However, the sharp upside was prevented on a surge in crude oil prices. Rupee may trade in the range of 72.65 to 73.30 in next couple of sessions,” Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas said.

Foreign portfolio investors (FPIs) were net buyers in the capital market as they purchased shares worth Rs 1,876.60 crore on Monday, as per exchange data.
On the domestic equity market front, the BSE Sensex ended 19.69 points or 0.04 per cent lower at 51,329.08, while the broader NSE Nifty slipped 6.50 points or 0.04 per cent to 15,109.30.
Meanwhile, the global oil benchmark Brent crude was trading 0.50 per cent higher at USD 60.86 per barrel.

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