Rupee Spurts To 73.32 Against US Dollar

Rupee Vs Dollar: Weakness in the dollar overseas and sharp gains in domestic equity markets supported the rupee, according to analysts.

Rupee Spurts To 73.32 Against US Dollar

Rupee Vs Dollar: The rupee is down 3.35% against the dollar so far this year

Rupee Vs Dollar: The rupee spurted by 72 paise - or 0.98 per cent - to 73.05 against the US dollar on Thursday, a day after the government allowed states to reopen movie theatres at 50 per cent capacity and said schools and educational institutions could restart in a phased manner. It quoted in a wide range, between 73.05 and 73.61, during the four-hour session, having started the day stronger at 73.59 compared to its previous close of 73.77. Weakness in the dollar overseas and sharp gains in domestic equity markets amid optimism about a recovery from the damage caused by the coronavirus pandemic supported the rupee, according to analysts. 

Domestic share markets moved more than 1 per cent higher on Thursday. The S&P BSE Sensex index jumped 635.78 points - or 1.67 per cent - to touch 38,703.71 at the strongest level of the day, and the broader NSE Nifty 50 benchmark climbed to as high as 11,423.50, up 175.95 points - or 1.56 per cent - from its previous close.

The country's current account surplus rose to a record $19.8 billion in April-June as its trade deficit narrowed sharply, Reserve Bank of India data showed on Wednesday. That followed its first surplus in 13 years, registered in the previous quarter.

Most Asian currencies strengthened against the US dollar. While the Japanese yen was last seen trading down 0.01 per cent, following a halt in the Tokyo Stock Exchange due to a hardware breakdown, the Chinese yuan was up 0.37 per cent and the Singaporean dollar up 0.21 per cent. 

The dollar index - which gauges the greenback against six other currencies - fell as much as 0.29 per cent on Thursday.  

"Over past one week, the rupee has remained relatively stable despite some erratic moves shown by Asian peers, possibly due to resumption of RBI intervention. Until now, weakness in the (USD-INR) pair is seen to be capped around 74.00 levels given by selling pressure and lack of steam," said Amit Pabari, managing director at forex advisory firm CR Forex.

"Strength is bottomed near 73.50 levels due to importers and RBI buying. If the near-term range of 73.50-74.00 is taken out, a further momentum of 50-80 paise can be expected," he added. 

At Wednesday's closing price, the rupee is down 3.35 per cent against the dollar so far this year.