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Rupee Closes At 3-Week High Of 73.16 Against Dollar: 10 Things To Know

Falling crude oil prices eased concerns over forex outflows amd supported selling of the US currency by exporters.

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The rupee had closed nearly unchanged at 73.57 against the dollar on Tuesday

Mumbai:  The rupee gained by 41 paise to end at 73.16 against the dollar on Wednesday, the highest closing level since October 1. Selling of the dollar by banks and exporters amid easing of crude oil prices along with a bounce-back in the domestic equity markets supported the rupee, say analysts. The rupee touched an intraday high of 73.09 during the session, before settling at 73.16 for the day. Despite Wednesday's gain, the rupee is still down more than 14 per cent so far this year.
Here are 10 things to know:
  1. The rupee had opened higher at 73.18 against the American currency on Wednesday, sharply higher than its previous close of 73.57.
  2. Suspected intervention by the Reserve Bank of India (RBI) in the forex market helped the rupee rise to 73 levels against the greenback, say analysts. 
  3. “RBI providing support to the rupee around the 74/dollar mark means that the rupee could hover in the range of 73 to 74 for the time being,” Jaikishan Parmar, senior equity analyst at Angel Broking, told NDTV.
  4. Falling crude oil prices eased concerns over forex outflows and supported selling of the US currency by exporters. 
  5. The greenback's weakness against some currencies overseas also helped the recovery in the domestic currency.
  6. Crude oil rose towards $77 a barrel on Wednesday after hitting a two-month low as the focus returned to looming US sanctions on oil exporter Iran, although concern about a weaker demand outlook weighed.
  7. Brent, the global benchmark for crude oil, was up 52 cents at $76.96 a barrel at 1:25 pm. It fell earlier in the day to $75.11 - the lowest since August 24.The domestic unit however pared some gains and settled the day up by 41 paise at 73.16 against the US dollar, a level not seen since October 1.
  8. Meanwhile, domestic equity markets reversed the declining trend witnessed in the past four consecutive sessions, with the Sensex rising 186 points to close above the key 34,000 mark on Wednesday.
  9. "The rupee could outperform its peers if crude prices manage to sustain at current levels," said IFA Global, a forex advisory firm. IFA Global expects the rupee to move in a likely range of 73.00-73.38 with a downside bias against the greenback.
  10. On Tuesday, the local currency had ended almost flat at 73.57 against the US currency.

(With agency inputs)





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