Rupee rises 3 paise to 73.13 per dollar amid positive equities
BusinessToday.In October 12, 2020
The Indian rupee gained 3 paise at 73.13 per US dollar on Monday's opening session, tracking softer crude oil prices and sustained buying in domestic equities.
The domestic unit started off the session on a strong note at 73.10, up 6 paise, but later lost ground to quote 73.13 per dollar. Meanwhile, the dollar index, gained 0.02 per cent to 93.07.
The domestic currency had settled 8 paise higher at 73.16 a dollar on Friday after the Reserve Bank kept key interest rates unchanged while retaining an accommodative stance. On a weekly basis, however, the domestic currency had lost 3 paise to the US dollar.
On the domestic equity market front, market indices continued bullish momentum for the eight session straight, amid positive global cues. Sensex gained 260 points to 40,774 and Nifty gained to 62 points to 11,997.
Commenting on rupee, Anuj Gupta - DVP- Commodities and Currencies Research, Angel Broking said, "Last week, Indian Rupee appreciated by 0.07 percent while the Dollar Index decreased by 0.29 percent. RBI decided to keep interest rates unchanged at 4 percent and monetary policy stance accommodative. RBI sees GDP contracting by 9.5 percent in FY21 but can expect recovery from Q4FY21. US FED officials worried that a lack of further fiscal stimulus would jeopardize an economic recovery that was moving faster than expected, according to meeting minutes. The meeting featured extensive discussion about the economic outlook, as members said the economy was doing better than expected in good part because of the fiscal help provided by Washington. That support is in jeopardy as talks have broken down between the White House and congressional Democrats and may not resume before the November election.
On the technical front, he added," As of today traders can go for sell in USDINR at 73.30, with the stop loss of 73.50 and for the target of 72.80. We are expecting appreciation in USDINR in short term and it may test 72.50 levels soon."
As per Reliance Securities, Dollar Index (93.13) near-term measures remain in sell mode, the immediate support falls around 93.00 - 93.10. Further drop cannot be ruled out. USDINR (73.015) has scope to appreciate more on near-term towards 72.75.
Global crude oil benchmark Brent was trading 0.84 per cent lower at 42.46 a barrel.
Foreign portfolio investors (FPIs) sold shares worth Rs 39.39 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 126.61 crore in the Indian equity market on 9 October, provisional data showed.
Worldwide, there were 377 lakh confirmed cases and 10.81 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 71-lakh mark and the death toll from COVID-19 infections rose to 10.9 lakh, as of today.