Rupee Rallies Higher To 74.88 Against Dollar On Easing Of Global Oil Prices

Rupee Vs Dollar Rate Today: At the interbank foreign exchange market, the domestic unit opened at 75.10 against the dollar and swung in the range of 74.83 to 75.13 during the day trade.

Rupee Rallies Higher To 74.88 Against Dollar On Easing Of Global Oil Prices

Rupee Vs Dollar Today: The rupee settled at 74.88 against the dollar

The rupee surged 47 paise against the US dollar on Wednesday, October 20, to settle at 74.88 (provisional) against the US dollar on Wednesday on easing of global crude oil prices. At the interbank foreign exchange market, the domestic unit opened at 75.10 against the dollar and swung in the range of 74.83 to 75.13 during the day trade. In an early trade session, the domestic unit rallied 26 paise to 75.09 against the greenback.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, surged 0.12 per cent to 93.84. On Tuesday, October 19, the currency market was closed on Tuesday for the Id-E-Milad' holiday.

According to forex dealers, a surging American currency in the overseas market and losses in the domestic equity markets put some pressure on the rupee. The rupee's rise today was mainly supported by the softening crude oil rates in the international markets. 
 

What analysts say:

Mr Amit Pabari, MD, CR Forex:

''The safe heaven dollar dipped to a three-week low near 93.70 levels amid prospects of faster tightening of monetary policy in other countries to counter growing inflation and a weaker than expected US economic data. Meanwhile, strong corporate results helped to lift investors' mood pushing US equities higher and 10-year U.S. Treasury yield above 1.65 per cent. 

Investors' sentiment could be driven down as IMF slashed India's GDP growth forecast by 25 basis points to six per cent owing to the pandemic. Technically, the next support for the pair is near 74.80 and 75.50 remains a strong resistance, keeping the pair consolidated between 74.50-75.50 for the near term.''
 

Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Limited:

''The USDINR spot closed 47 paise lower at 74.87, the lowest level since October 7th on the back of a sharp rally in Chinese currency and fall in the US Dollar Index. With oil prices holding steady at around 85 dollars a barrel, rupee has become a major underperformer in the Asian basket.

There is scope for rupee to gain further ground, especially if the US Dollar Index remains weak and global equity markets maintain the risk on-trend. We expect a range of 74.50-75.20 over the near term.''

Domestic Equity Markets Today:

On the domestic equity market front, the BSE Sensex ended 456.09 points or 0.74 per cent lower at 61,259.96, while the broader NSE Nifty declined 152.15 points or 0.83 per cent to 18,266.60.


Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Limited:

''Market sentiment was weak throughout the trading session on the back of heightened profit-taking by investors in stocks that had rallied sharply in recent sessions. After a muted opening, benchmark Nifty broke the 18400 intraday support level and thereafter maintained a negative stance throughout the day.

In the last two days, the Nifty corrected nearly 400 points and currently, it is trading near the important retracement support level. We are of the view that the index has completed one leg of correction, and 18150 and 18200 could act as sacrosanct support levels for the traders. Above the same, there is a strong possibility of a quick pullback rally up to 18350-18425 levels.''


According to exchange data, the foreign institutional investors were net sellers in the capital market on October 19, as they offloaded shares worth Rs 505.79 crore. Brent crude futures, the global oil benchmark, fell 0.83 per cent to $ 84.37 per barrel.

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