Rupee Jumps To 5-Month High Of 74.32 Against Dollar

Rupee Vs Dollar Today: The rupee recovered early losses to gain by as much as 56 paise - or 0.75 per cent - against the US dollar on Monday. Having started the week mildly lower at 74.90 compared to its previous close of 74.85, the rupee rose to settle with a gain of 53 paise - or 0.71 per cent - at 74.32 for the day. That marked its highest closing level recorded since March 18. Strength in domestic equities and weakness in the dollar overseas supported the rupee, according to analysts.

Domestic stock markets moved higher backed by buying interest in private-sector banks, as more businesses resumed operations after the coronavirus pandemic-triggered lockdowns, although gains were limited as COVID-19 cases in the country crossed 3 million.

The S&P BSE Sensex index rose as much as 1.09 per cent to 38,853.96 and the broader NSE Nifty 50 benchmark climbed to as high as 11,486.75, up 1.01 per cent from its previous close.

Global oil benchmark Brent crude futures were last seen trading near their intraday high of $44.69 per barrel, up 0.77 per cent from their previous close. 

The dollar index - which gauges the US currency against six peers - was down 0.15 per cent at the time, having declined as much as 0.20 per cent earlier on Monday.

Other Asian currencies traded on a mixed note against the dollar. While the Japanese yen was down 0.05 per cent, the Chinese yuan and the Singaporean dollar were up 0.09 per cent and 0.16 per cent respectively.

"After having traded in a thin intraday range for nearly a month, the rupee finally broke the 74.50 barrier on the back of FII (foreign institutional investor) inflows coupled with the Reserve Bank of India halting the dollar buying programme," said Amit Pabari, managing director at CR Forex Advisors.

"If the (USD-INR) pair sustains below 74.50 and the RBI abstains from buying, there is an increased possibility of pair touching 73.80 to 74.00 levels in sessions to come," he added.

At the current level, the rupee has recovered 3.37 per cent against the dollar since an all-time low of 76.91 registered in April, but is still down 4.15 per cent so far this year.