This Article is From Jan 06, 2021

Rupee Settles Marginally Higher To 73.11 Against Dollar

Rupee Vs Dollar Rate Today: At the interbank foreign exchange market, the local unit opened at 73.16 against the dollar and registered an intra-day high of 73.05

Rupee Settles Marginally Higher To 73.11 Against Dollar

Rupee Vs Dollar Rate Today: Rupee settled at 73.11 against dollar on January 6

The rupee gained marginally by six paise against the US dollar on Wednesday, January 6, to settle at 73.11 (provisional), amid sustained foreign fund inflows and weaker American currency against major rivals. At the interbank foreign exchange market, the local unit opened at 73.16 against the dollar and registered an intra-day high of 73.05. It witnessed a low of 73.19. The domestic unit opened on a flat note and gained three paise to 73.14 against the greenback in the opening trade. The rupee settled at 73.11, registering a gain of six paise over its previous close. On Tuesday, January 5, the local unit declined 15 paise to close at 73.17 against the American currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.15 per cent to 89.30. According to provisional exchange data, the foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 986.30 crore on a net basis on January 5.

"Indian rupee appreciated amid weakness in dollar and steady FII inflows. Dollar weakened on prospect of the Democrats winning both the seats at Senate runoff election in Georgia. If Democrats win both seats it would be easier for elected President Joe Biden to pass new legislation," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas. ''Additionally, markets expect Democrat-led government may add more fiscal stimulus,'' he added.

''The dollar was well bid yesterday  as RBI ensured that 73.00 is not breached. Flows were lower from FPIs as the Senate run off result and Bidens confirmation is still awaited. 73.10 to 73.40 should be today's range. Buy the dips for importers and sell the upticks for exporters can be the trade as equities  remain in a range but broader markets are all up,'' said Mr Anil Kumar Bhansali, Head - Treasury, Finrex Treasury Advisors. 

On the domestic equity market front, the BSE Sensex ended 263.72 points or 0.54 per cent lower at 48,174.06, while the broader NSE Nifty declined 53.25 points or 0.38 per cent to 14,146.25. '“Nifty trades around the 14100; midcap stocks have outperformed in the recent past and select stocks continue to remain in momentum,'' said Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities.

''There has been a shift in positions/interest from frontline stocks to the midcap space which usually in followed by a correction. FMCG stocks look attractive while Metals and Banking are expected to witness volatility. Traders are advised to keep leverage in control while investors can wait for a meaningful dip to buy aggressively,'' added Sahaj Agrawal.

Brent crude futures, the global oil benchmark, advanced 54.08 per cent to $ 0.90 per barrel.