This Article is From Aug 11, 2020

Rupee Edges Higher To 74.82 As Dollar Weakens

Rupee Vs Dollar Today: The rupee moved in a range of 74.82-74.86 against the dollar after opening mildly stronger at 74.83 compared to its previous close of 74.90.

Rupee Edges Higher To 74.82 As Dollar Weakens

Rupee Vs Dollar: The rupee is down nearly 5% against the dollar so far this year

Highlights

  • Rupee rises 0.11% against dollar in intraday trade
  • Gains in domestic equity markets, weakness in dollar support rupee
  • Rupee is off 2.61% a record low registered in April

Rupee Vs Dollar Rate Today: The rupee edged higher by as much as eight paise - or 0.11 per cent - to touch 74.82 against the US dollar on Tuesday, amid gains in domestic equity markets and weakness in the greenback overseas. It moved in a range of 74.82-74.86 in morning deals, having started the four-hour session mildly stronger at 74.83 against the US currency compared to its previous close of 74.90. The rupee was last seen trading at the 74.83 mark against the dollar.

Domestic stock markets climbed higher, with the benchmark NSE Nifty 50 index rising for a sixth straight session, amid gains in financial, consumer goods and metal shares.

The S&P BSE Sensex index jumped as much as 0.97 per cent to 38,550.74 during the first half of the session, and the broader NSE Nifty 50 benchmark rose to as high as 11,373.60, up 0.92 per cent from its previous close.

Crude oil prices gained more ground on Tuesday, with prices underpinned by expectations of US stimulus and a rebound in Asian demand as economies reopen. Brent crude futures - the global benchmark for crude oil - were last seen trading 0.20 per cent higher at to $45.06 per barrel.

The dollar index - which measures the dollar against six currencies - was last seen trading 0.05 per cent lower, having declined as much as 0.08 per cent earlier on Tuesday. 

Asian currencies traded on a mixed note. While the Japanese yen was last seen trading 0.12 per cent lower against the dollar, the Singapore dollar was up 0.12 per cent and the Chinese yuan up 0.17 per cent.

"A risk-on mood prevails across Asian equity markets. The US dollar is on the back foot and commodity prices are rising. This is a template which calls for the rupee to rise against the greenback, but there is a spanner in the works," brokerage Kotak Securities said in a note.

"Over the short to medium term, if the RBI remains committed to protect the USD-INR (pair) and not let it drift below 74.50 on spot, then a listless range remains in store," it added. 

At Monday's close of 74.90, the rupee has recovered 2.61 per cent against the US currency since an all-time low of 76.91 logged in April, but is still down 4.96 per cent so far this year.