This Article is From Dec 30, 2021

At 74.42, Rupee Settles At 1-Month High Against US Dollar On Year-End Selling

Rupee Vs Dollar Today: At the interbank foreign exchange market, the local unit opened at 74.56 against the dollar and registered an intra-day high of 74.38

At 74.42, Rupee Settles At 1-Month High Against US Dollar On Year-End Selling

Rupee Vs Dollar Today: The rupee settled at 74.42 against the dollar

The rupee rose 29 paise to settle at a more than one-month high of 74.42 against the US dollar on Thursday, December 30, following year-end dollar selling by banks and exporters amid muted domestic equities.

At the interbank foreign exchange market, the domestic unit opened at 74.56 against the dollar and registered an intra-day high of 74.38. It witnessed a low of 74.65. In an early trade session, the local unit rose 15 paise to 74.56 against the dollar. The domestic unit settled at 74.42 - a level not seen since November 24. Lower commodity prices and gains in Asian peers also supported the rupee sentiment, according to analysts.

Meanwhile, the dollar index, which measures the greenback's strength against the basket of six currencies, rose 0.26 per cent to 96.18. The dollar rose against major rival currencies in holiday-thinned trading as investors remained cautiously optimistic about the economic consequences of a surge in cases of the Omicron coronavirus variant.

Mr Amit Pabari, MD, CR Forex: ''While global FX markets are silent and DXY is hovering near the 96 mark; the Indian Rupee is riding on its appreciating mode to trade near a one-month high against USD.

Amid higher oil prices, global yields are soaring again. The US 2-10 year yield curve further flattened to multi-month levels and that could be a positive sign for the US dollar index. Post-holiday period, we could see traders again betting for stronger US dollar on Fed rate hike and could pressurize on the Rupee.

But till that time, movement will be guided RBI's action against excess liquidity. Overall, we are expecting the USDINR pair to trade in the range of 74.20 to 75.50 with a downside bias.''

Domestic Equity Markets Today:

On the domestic equity market front, the BSE Sensex ended 12.17 points or 0.02 per cent lower at 57,794.32, while the broader NSE Nifty declined 9.65 points or 0.06 per cent to 17,203.95.

''Benchmark indices continued to trade in a narrow range on the back of thin volumes due to tepid investor activity ahead of the year-end. After a muted opening, the Nifty moved in a narrow range between 17150 to 17250. It made a couple of attempts to hold on to the higher terrain at 17250 but slipped from the level due to a lack of follow-through buying interest.

For the bulls, 17275 would be the important breakout level to watch and if the index manages to trade above the same, we can expect a quick uptrend towards 17325-17375 levels,'' said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

According to exchange data, the foreign institutional investors were net sellers in the capital market on December 29, as they offloaded shares worth Rs 975.23 crore. Brent crude futures, the global oil benchmark, fell 0.68 per cent to $78.69 per barrel.