Rupee surges 11 paise to 73.49 amid weak dollar, positive equities

Indian rupee, the local currency benchmark, strengthened by 11 paise to 73.49 per US dollar on Wednesday's opening trade, supported by foreign portfolio flows and strong opening in domestic equities.

Amid weakened American currency, the domestic unit opened at 73.58 per dollar at the interbank forex market and gained by 11 paise to 73.49 over its previous close.

On Tuesday, the rupee surged by 30 paise to settle at a one-and-a-half month high of 73.60 per US dollar.

Reliance Securities said in a research note said, "RBI's presence in the market and a steady US dollar could also keep appreciation bias limited. Dollar inflows into local equities could keep depreciation bias limited. Further, investors have turned cautious globally ahead of key events looming for the markets. Uncertainty around Brexit, the progress of a fiscal spending package through US Congress and the outcome of Thursday's ECB meeting have made traders temporarily cautious."

Meanwhile, the dollar index was trading 0.17 per cent down at 90.81 against a basket of six currencies.

On the domestic equity market front, market indices traded on a bullish note for the fifth straight session on Wednesday and touched new lifetime highs, in line with positive global equities. Sensex traded 375 points higher at 45,956 and Nifty was trading 93 points higher at 13,486. Intraday, both indices touched all time highs today, with Sensex hitting 45,989 and Nifty touching 13,501.

Foreign portfolio investors (FPIs) bought shares worth Rs 2,909.60 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 2,640.93 crore in the Indian equity market on 8 December, provisional data showed.

Brent crude futures, the global oil benchmark, fell 0.33 per cent to USD 48.68 per barrel. Oil prices slipped as the State of California imposed more lockdown restrictions as Covid19 cases rose in US and Europe which overshadowed optimism over vaccine development.

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