Rupee Snaps 8-Session Losing Streak, Gains 22 Paise To Settle 73.86 Against Dollar

Rupee Vs Dollar Today: The rupee settled at 73.86 against the dollar

Snapping its eight-session losing streak, the rupee rose 22 paise against the US dollar on Friday, June 18, to settle at 73.86, catching cues from the stronger Asian currencies and reduced crude oil prices. At the interbank foreign exchange market, the local unit opened lower at 74.10 against the dollar. It touched an intra day low of 74.27 tracking a weak trend in domestic equities, before closing at 73.86 per dollar. In an early trade session, the local unit declined six paise to 74.14 against the greenback.

The domestic unit lost 128 paise in the last eight trading sessions till Thursday. On Thursday, June 17, the domestic currency plunged by as much as 76 paise to settle at 74.08 against the dollar, after the outcome of the US Federal Reserve policy. Yesterday, it recorded its single-biggest fall in over two months. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 91.93, up 0.05 per cent. 

”Finally, the rupee has managed to break 73.80 crucial resistance yesterday. With markets remaining too volatile, it gave a “WIN-WIN situation” for both importers and exporters. Importers were lucky to get an appreciating move till 72.40 and now are sitting risk-free,” said Mr Amit Pabari, MD, CR Forex.

”While exporters who were advised to cover partially in the range of 73.30-73.40 and wait for a further upside momentum could now encash gains from the higher USDINR spot rate and sell in tranches above 74.00-74.40 levels for the near term,” added Mr Pabari.

“The USDINR spot is at an inflection point, though optimism over Fed rate hikes is keeping the USDINR afloat, the price activity suggest that revaluation of positioning is currently taking place. Today’s weekly closing will be important for more clear direction for USDINR in coming days. Sustenance above 74.25 will open doors for 74.50-74.65,” said Mr. Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.

 On the domestic equity market front, the BSE Sensex ended 21.12 points or 0.04 per cent higher at 52,344.45, while the broader NSE Nifty fell 8.05 points or 0.05 per cent to 15,683.35.

“Indian markets were slightly lower this week as markets participants remained cautious after FOMC indicated that they may start increasing rates from CY23. The Nifty 50 was at 15,608 on June 18 falling by 1.2 per cent during the week, while the Sensex was at 52,043 falling 0.82 per cent during the week,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

”Going forward, markets would keep an eye on US economic recovery and signals from the Fed, global commodity prices, new Covid cases & pace of vaccination process in India, unlock measures by various states, GST collections, monsoon development Pan India and consistency of reforms from the government,” he added.

According to exchange data, the foreign institutional investors were net sellers in the capital market on June 17 as they offloaded shares worth Rs 879.73 crore. Brent crude futures, the global oil benchmark, fell 0.64 per cent to $ 72.61 per barrel.

Author: desi123

Desi123.com is an online news portal that aims to provide the latest trendy news for Asians living in Asia and around the World.

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