Rupee jumps 41 paise to close at 78.65 against dollar

In the interbank forex market, the local unit opened strong
Image Source: PTI In the interbank forex market, the local unit strengthened against the greenback at 78.96 and witnessed an intra-day high of 78.49 and a low of 78.96.

The rupee on Tuesday jumped 41 paise to close at 78.65 (provisional) against the US dollar on continued inflow of foreign funds into capital markets and softening crude oil prices.

In the interbank forex market, the local unit strengthened against the greenback at 78.96 and witnessed an intra-day high of 78.49 and a low of 78.96.

It finally ended at 78.65 against the US currency, up 41 paise from its previous close. The rupee had closed at 79.06 against the US dollar in the previous session.

“Despite the odds, the Indian rupee and equities outperformed the sector as foreign institutions turned into net buyers of equities and debt.

Dilip Parmar, Research Analyst, HDFC Securities, said, “Dollar-long liquidation, FPI inflows, lower crude oil prices and correction in high-frequency data supported the rupee’s gains.

Proceeding further, the bias remains to the downside as the pair is closing below the 50-day simple moving average and a level below 78.50 will give way to 77.60. “However, one must adjust one’s position according to US-China geopolitical updates”, he said.

On the domestic equity market front, the BSE Sensex closed 20.86 points or 0.04 per cent higher at 58,136.36, while the broader NSE Nifty ended 5.40 points or 0.03 per cent higher at 17,345.45.

Global oil benchmark Brent crude futures fell 0.38 per cent to $99.65 per barrel. The dollar index, which measures the greenback’s strength against a basket of six currencies, gained 0.10 per cent to 105.55.

Foreign institutional investors were net buyers in the capital markets on Monday, buying shares worth Rs 2,320.61 crore, according to exchange data.

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