Rupee Edges Higher To 74.91 Against Dollar

Edited by Sandeep Singh (with inputs from agencies)

09 Jul 2020, 01:14 PM IST

Rupee Vs Dollar: The rupee strengthened to as high as 74.91 against the dollar during the session

The rupee appreciated by 11 paise - or 0.15 per cent - to return to 74 levels on Thursday. The domestic currency moved in a range of 74.91-75.02 during the session, having started the day stronger at 74.94 compared to its previous close of 75.02. Analysts say gains in domestic equity markets and weakness in the dollar overseas supported the rupee, however weakness in other Asian currencies limited the upside. (Also Read: Why Little Uptick In Rupee Is Expected Despite Multiple Positives)

At Wednesday's close of 75.02, the rupee has recovered 2.46 per cent from a record low of 76.91 logged in April, but is still down 5.13 per cent against the US currency so far this year. That makes the rupee the worst performing Asian currency.

Domestic stock markets climbed up around 1 per cent amid a rally in metal stocks, continuing to rise a day after benchmark indices snapped a rally that lasted for five sessions in a row.The S&P BSE Sensex index rose 1.01 per cent to touch 36,694.34 at the strongest level recorded on Thursday, and the broader Nifty benchmark climbed up 0.88 per cent to 10,800.00.

International crude oil rates were little changed as concerns about renewed COVID-19 lockdowns in the US outweighed signs of a recovery in US fuel demand.

The global benchmark for crude oil, Brent crude, was last seen trading 0.05 per cent higher at $43.31 per barrel, having gained 0.5 per cent on Wednesday.

The dollar index - which gauges the US currency against six major peers - was 0.11 per cent lower, having earlier declined as much as 0.20 per cent on Thursday.

"Domestically, the current price action momentum in the rupee suggests that the (USD-INR) pair is awaiting directional ques and following trends in the Asian currencies," said Amit Pabari, managing director at CR Forex, a foreign exchange advisory firm.

"The sustenance of the pair above 74.50 levels indicates the buying pressure possibly by the RBI which will limit the gains in rupee in the near-term. However, the pair is likely to continue to trade within 74.50-75.50 levels for the next few sessions," he added.