Rupee Rises To 76.02 As Equities Lengthen Positive factors, Greenback Weakens


Rupee Vs Dollar: The rupee gained to as high as 75.98 against the dollar during the session

Rupee Vs Dollar Today: The rupee gained by 17 paise – or -0.22 per cent – to close at 76.02 against the US dollar on Monday, starting the week on a positive note following two straight weekly losses. It moved in a range of 75.98-76.18 during the four-hour session, having started the day nearly unchanged at 76.17 compared to its previous close. Analysts say extended gains in domestic equity markets and weakness in the dollar overseas supporter the rupee.

Domestic stock markets jumped more than 1 per cent as domestic regulatory approvals to manufacture COVID-19 drugs lifted pharmaceutical stocks, countering the impact of another surge in coronavirus cases over the weekend.

Benchmark equity indices S&P BSE Sensex and NSE Nifty 50 were on course to end higher for a third straight trading session.

However, analysts say the rupee is expected to continue to remain under pressure in the near term. 

“As the challenge on economy and trade relations is not restricted to the domestic borders and is widespread across the globe, it will keep the dollar on a stronger foot. On the domestic front, the RBI has been buying dollars in a large quantum and has taken forex reserves to $507.64 billion,” said Amit Pabari, managing director at forex advisory firm CR Forex.

“Strength in the dollar can sustain for a longer period and this will eventually not allow rupee to appreciate sharply below 75.00 levels. However, the pressure shall remain on the depreciation side and if the pair continues to trade above 76.20 levels, it might move near 76.50-77.00 levels in the days to come,” he said. 

The dollar index – which gauges the greenback’s performance against six currencies – was last seen trading down 0.33 per cent, the weakest level of the day so far.

Meanwhile, international crude oil prices were steady on Monday, supported by tighter supplies from major producers but held in check by concerns over a record rise in coronavirus infections worldwide that could stall a recovery in fuel demand.

Brent crude futures – the global benchmark for crude oil – were last seen trading 0.20 per cent higher at $42.29 per barrel.

Currency markets currently operate within reduced trading hours due to the coronavirus-induced lockdown. The temporary timings are from 10 am to 2 pm, instead of the normal timings of 9 am to 5 pm.

At the current level, it is down 6.53 per cent against the US currency so far this year.

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