Rupee rises for 3rd day, up 27 paise to 74.19 per USD
Mumbai: The rupee continued its winning run for the third session in a row on Wednesday, spurting 27 paise to settle at 74.19 against the US dollar amid unabated foreign fund inflows and a weak greenback overseas.
At the interbank forex market, the domestic unit opened at 74.49 against the US dollar and touched an intra-day high of 74.09 and a low of 74.52.
It finally closed at 74.19 against the greenback, registering a rise of 27 paise over its previous close.
The rupee had on Tuesday appreciated 16 paise to finish at 74.46.
"Indian Rupee appreciated majorly on the back of weakness in the dollar. The dollar slipped as rising COVID-19 cases in the US forced local authorities to impose fresh restrictions to curb the outbreak.
"Moreover, US Federal Reserve Chair Jerome Powell warned that surge in COVID-19 cases poses risk to the economy and would require more support from Federal Reserve and Government," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.21 percent down at 92.22.
Mukadam added that the "rupee may trade in the range of 73.65 to 74.80 in next couple of sessions".
On the domestic equity market front, the 30-share BSE Sensex ended 227.34 points or 0.52 percent higher at a record 44,180.05. The broader NSE Nifty too surged 64.05 points or 0.5 percent to its lifetime high of 12,938.25.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 3,071.93 crore on Wednesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 1.01 percent to USD 44.19 per barrel.
"Rupee after opening on a flat note appreciated in the latter half of the session following suspected dollar inflows that hit the market. The currency is likely to extend its gains in the next couple of sessions as FIIs continue to pour in funds in the equity segment," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
Somaiya added that "in the last couple of sessions FIIs have poured in another USD 1 billion taking the total to USD 5.1 billion in this month. We expect the USD-INR (Spot) to trade lower and quote in the range of 73.90 and 74.40."
According to Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities, the Indian rupee extended its gains on Wednesday supported by inflows into local stocks and dollar selling by exporters.
"The RBI intervention capped downside as the dollar buying from the central bank came around the rate of 74.12-74.13 during the day. However, strong selling from exporters pushed the pair towards the short-term support of 74. The pair may remain under pressure and head towards 74 mark on strong inflows and dollar supply from exporters," Vakil added.
"The Indian Rupee appreciated against the U.S. Dollar supported by foreign fund inflows into the domestic equity and debt markets. However, PSU dollar purchases, rumored to be on behalf of the central bank, trimmed some of the gains," said Sriram Iyer, Senior Research Analyst at Reliance Securities.
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India moving towards becoming global economic powerhouse: Kovind
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Amritsar (PTI): Former president Ram Nath Kovind on Friday said that with digital transformation, economic reforms and a strong focus on the ease of doing business, India is moving towards becoming a global economic powerhouse.
He was speaking after inaugurating the 19th edition of the Punjab International Trade Expo (PITEX) in Amritsar.
The former president said that this 19th edition of PITEX is being organised at a time when India is recognised as one of the fastest-growing large economies in the world.
Speaking at the inaugural ceremony of the event organised by the PHD Chamber of Commerce and Industry (PHDCCI) the former president, while referring to Punjab, said the state is a living example of courage, sacrifice and enterprise.
"The spiritual light of Sri Harmandir Sahib (Golden Temple) inspires peace and humanity across the world. The heritage of Punjab is deep and inspiring," Kovind said, according to a statement issued by the PITEX.
The former president congratulated the PHDCCI for hosting the 19th edition of PITEX and suggested that the chamber should expand PITEX outside Punjab.
He proposed that a similar event should also be held in New Delhi.
