The rupee declined by 15 paise against the US dollar on Tuesday, January 5, to close at 73.17 (provisional) even as the domestic equity markets settled with significant gains. According to forex traders, sustained foreign fund inflows and weakness of the American currency in the overseas market restricted the rupee's decline. At the interbank foreign exchange market, the local unit opened flat at 73.02 against the dollar and registered an intra day of 73.02. It witnessed a low of 73.27 during the session. Settling at 73.17, it slipped 15 paise over its previous close. On Monday, January 4, the domestic unit gained marginally by nine paise to settle at a four-month high of 73.02 against the American currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.19 per cent to 89.69. On the domestic equity market front, the BSE Sensex ended 260.98 points or 0.54 per cent higher at 48,437.78, while the broader NSE Nifty advanced 66.60 points or 0.47 per cent to 14,199.50.
''The market continues to witness resilience and recovered after an opening with a gap down to stay above the immediate support level of the Nifty 50 Index level of 13950. While sustaining above 13950 is the key factor from a short-term perspective. We suggest maintaining above this level market to gain momentum and open the possibility for a movement until 14250-14270. The momentum indicators like RSI, MACD to recover, and market breadth to improve, further strengthening a short-term bullish outlook,'' said Ashis Biswas, Head of Technical Research at CapitalVia Global Research Ltd- Investment Advisor.
According to provisional exchange data, the foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,843.22 crore on a net basis on January 4. Brent crude futures, the global oil benchmark, rose 0.72 per cent to $ 51.56 per barrel.