Rupee Snaps Losing Streak, Settles Higher To 72.91 Against Dollar

Rupee Vs Dollar Rate: The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03 per cent to 89.94.

Rupee Snaps Losing Streak, Settles Higher To 72.91 Against Dollar

Rupee Vs Dollar Today: The rupee settled at 72.91 against the dollar

Snapping its three-day losing streak and erasing its early losses, the rupee edged higher by 18 paise against the US dollar on Thursday, June 3, to settle at 72.91 (provisional) tracking positive domestic equities. At the interbank foreign exchange market, the domestic unit opened on a weak note at 73.17 against the dollar and registered an intra-day high of 72.90. It witnessed a low of 73.18. In an early trade session, the local unit declined nine paise to 73.18 against the greenback. 

The domestic currency closed at 72.91, registering a rise of 18 paise over its previous closing. On Wednesday, June 2, the local unit settled at 73.09 against the greenback. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03 per cent to 89.94.

According to forex traders, market participants remained vigilant ahead of Reserve Bank of India (RBI) monetary policy meeting outcome scheduled to be held on June 4.

''MSCI rebalancing buying yesterday was seen after which an MNC bank sold USDINR taking it down all the way to 73.02. Lot of receiving in forward swaps by the central bank bringing the yields down by about 40 basis. Major European currencies are still in a range while stock markets are up. Asian currencies slightly weak. Importers to take a back seat for now and wait for 72.65 while exporters may sell near to 73.3,'' said Mr. Anil Kumar Bhansali, Head of Treasury - Finrex Treasury Advisors.

On the domestic equity market front, the BSE Sensex ended 382.95 points or 0.74 per cent higher at 52,232.43, while the broader NSE Nifty climbed 114.15 points or 0.73 per cent to 15,690.35.

“While the Nifty is moving towards 16,000, it has set a new record closing high. Today, Titan, ONGC and L&T helped bring the Nifty to end at higher levels. The Nifty has once again formed a bullish continuation today. Tomorrow is credit policy and the outcome of the RBI announcement could dictate the trend....The focus should be on FMCG and Auto stocks,'' said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

According to exchange data, the foreign institutional investors were net buyers in the capital market on June 2 as they purchased shares worth Rs 921.10 crore. Brent crude futures, the global oil benchmark, rose 0.17 per cent to $ 71.47 per barrel.