India Markets close in 1 hr 22 mins

Rupee darts up 15 paise to 73.25 vs USD

·2-min read

Mumbai, Jan 12 (PTI) The rupee recouped early losses and closed 15 paise higher at 73.25 against the US dollar on Tuesday, supported by weakness in the greenback overseas and recovery in domestic equities.

Unabated FPI inflows added to the momentum, though gains were capped by firm crude oil prices, forex traders said.

At the interbank forex market, the rupee opened weak at 73.42 and shuttled between a high of 73.24 and a low of 73.44.

It finally finished at 73.25, up 15 paise over its previous close.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.09 per cent to 90.38.

On the domestic equity market front, the BSE Sensex surged 247.79 points or 0.50 per cent to close at a record 49,517.11, while the broader NSE Nifty advanced 78.70 points or 0.54 per cent to 14,563.45.

Foreign institutional investors remained net buyers in the capital markets, purchasing shares worth Rs 3,138.90 crore on Monday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 1.71 per cent to USD 56.61 per barrel.

'The Indian rupee appreciated against the US currency supported by inflows in local shares. However, gains were capped as the dollar index remained steady, while the US Treasury yields rose this Tuesday,' said Sriram Iyer, Senior Research Analyst at Reliance Securities.

Asian currencies were mixed, with the Chinese yuan appreciating while the Korean won was marginally weak, Iyer said, adding investors will be eyeing retail inflation and IIP data for further cues.

According to Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services, rupee rose in the latter half of the session following sharp gains in domestic equities and as FIIs continued to pour funds into the equity segment.

'Momentum has been positive for the rupee also on back of expectation of slower growth in inflation. Inflation and industrial production number will be released later in the day and the impact of the same will be seen on Wednesday,' Somaiya said.

He further noted that 'for the next couple of sessions we expect the USDINR (Spot) to trade sideways and quote in the range of 73.05 and 73.50.' PTI DRR ABM ABM