Rupee Recovers Higher To 73.25 Against Dollar


2021-01-12 10:55:04

Rupee Gains 15 Paise to Settle Higher At 73.25 Against Dollar

Rupee Vs Dollar Today: Rupee settled at 74.25 against US dollar

The rupee recovered from early losses and gained by 15 paise against the US dollar on January 12, 2021, Tuesday, and settled at 73.25 (provisional) amid positive domestic equities and weakness in the American currency. At the interbank foreign exchange market, the domestic unit opened weak at 73.42 but recovered its lost ground. Amid the trading session, the rupee registered an intra-day high of 73.24 and a low of 73.44. In opening trade, the local unit depreciated four paise to 73.44 against the greenback tracking muted domestic equities. On January 11, 2021, Monday, the rupee had settled at 73.40 against the American currency. 

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.09 per cent to 90.38. ”With dollar Index and US yields rising and RBI warning on stock markets/asset prices, it seems that we may see some risk aversion in near term. For the present flows continue and rupee remains in the range of 73.30/60. Sell near to 73.60 for exports and hedge towards 73.30 for imports could be today’s trade,” said Anil Kumar Bhansali, Head- Treasury, Finrex Treasury Advisors. 

On the domestic equity market front, the BSE Sensex ended 247.79 points or 0.50 per cent higher at 49,517.11, while the broader NSE Nifty climbed 78.70 points or 0.54 per cent to 14,563.45. “Today, financial stocks, especially PSU banks, showed strong support in the market to move above the critical psychological barrier point of 14500. The Bank-Nifty is 215 points away from reaching an all-time high of 32613.10. The Nifty 50/Sensex index has closed above the peak point of the indecisive candlestick formation, suggesting further upside. Sectoral rotational activity clearly shows that the broader market trend is still very strong,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities

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”On Wednesday, the Nifty would take hold at the level of 14650/49800 or at 14700/50000. On the downside, the Nifty should find support between 14450 or at 14400. Our strategy should be to buy select stocks on dips or Index between 14460/14430 levels. The bullish reversal formation of Reliance Industries would help the Sensex to reach the milestone of 50,000 in the near term,” he added.

According to provisional exchange data, the foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 3,138.90 crore on January 11, 2021. Brent crude futures, the global oil benchmark, rose 1.71 per cent to $ 56.61 per barrel. 



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