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Rupee rises by 6 paise to 73.52 amid weak US dollar, sustained foreign fund inflows

BusinessToday.In     December 17, 2020

Indian rupee, the local currency appreciated by 6 paise to 73.52 per US dollar on Thursday's opening trade as sustained foreign fund inflows and positive domestic equities strengthened investor sentiment.

Weakness of the American currency and optimism surrounding the US stimulus package also supported the domestic unit.

The domestic unit opened at 73.52 per greenback at the interbank forex market, rising 6 paise over its previous close.

On Wednesday, the rupee appreciated 5 paise to close at 73.58 against the US dollar, as sustained foreign fund inflows and strong domestic equities strengthened investor sentiment.

Meanwhile, the dollar index was trading 0.44 per cent lower at 90.05 against a basket of six currencies.

The US Federal Reserve affirmed their pledge to keep benchmark rate near zero and continue bond buying.

On the domestic equity market front, market indices raced to fresh peaks on Thursday's opening session amid mixed trends in global markets.  Sensex traded 90 points higher at 46,757 and Nifty gained by 26 points to 13,709. In today's session, Sensex hit an all-time high of 46,812 and Nifty logged a lifetime high of 13,713.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,981.77 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,718.45 crore in the Indian equity market on 16 December, provisional data showed.

Brent crude futures, the global oil benchmark, were trading at USD 51.52 per barrel, higher by 0.86 per cent. Oil price gained as data showed that crude inventories fell last week backed by optimism over coronavirus relief package redied in the US.

Reliance Securities said in a research note, "The dollar recovered from the lows of the session, but still ended weak in a choppy trading session after the Federal Reserve disappointed investors expecting a shift toward more purchases of longer-dated bonds."

Stocks in news: Wipro, IRCTC, Aster DM, Hero MotoCorp, IndusInd Bank, Future Enterprises, Jubilant FoodWorks

Share Market News Live: Sensex hits new high, Nifty at 13,713 for first time; HDFC, M&M, RIL top gainers

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