Rupee Erases Early Gains, Closes At 74.82 Against Dollar

Rupee Vs Dollar Rate Today: The rupee reversed early gains to end at 74.82 against the US dollar on Wednesday, despite mild gains in most other Asian currencies. It moved within a range of 24 paise against the greenback, between 74.68 and 74.92, during the four-hour session, before settling with a loss of of six paise for the day. It had opened mildly stronger at 74.69 against the dollar compared to its previous close of 74.76. 

At the current level, the rupee has recovered 2.72 per cent against the dollar since an all-time low of 76.91 registered in April, but is still down 4.85 per cent so far this year.

Domestic equity markets moved higher tracking Asian shares, with benchmark indices S&P BSE Sensex and NSE Nifty 50 on course to close higher for a third straight session.

The Sensex rose as much as 0.68 per cent to 38,788.51, and the Nifty climbed as much as 0.66 per cent to 11,460.35 during the session, led by a strong buying interest in banking, financial services and energy spaces.

While the Japanese yen was last seen trading 0.04 per cent higher against the US dollar and the Singaporean dollar up 0.07 per cent, the Chinese yuan and the South Korean won were up 0.22 per cent and 0.07 per cent respectively.

The dollar index - which gauges the dollar against six currencies - was flat at the time, having moved in a tight range on either side compared to its previous close earlier on Wednesday.

"With highly accommodative central banks, the dollar on a persistent decline and money flowing in the emerging markets, especially India, the rupee has all the reasons to appreciate as it has not strengthened so far to the extent of its peers with the Reserve Bank of India buying dollars," said Amit Pabari, managing director at CR Forex Advisors, a forex advisory firm.

"However, with a broad dollar decline and the renewed need for open market operations, the RBI might have to pause or slow down the dollar purchases at some point and will have to let the rupee appreciate," he added.

Crude oil prices eased on Wednesday on concerns that US fuel demand may not recover as quickly as expected amid stalled talks on an economic stimulus package.

As investors kept an eye on a key meeting of ministers from producer countries later in the day, global benchmark Brent crude futures were last seen trading 0.84 per cent lower at $45.08 per barrel.