Rupee rallies 29 paise to close at 72.83 against US dollar

Rupee rallies 29 paise to close  at 72.83 against US dollar

Mumbai: The rupee strengthened by 29 paise to end at 72.83 (provisional) against the US dollar on Friday, tracking positive domestic equities and weaker American currency in the overseas market.

At the interbank forex market, the local unit opened at 72.98 against the greenback and witnessed an intra-day high of 72.83 and a low of 73.09.

It finally ended at 72.83, registering a rise of 29 paise over its previous closing. On Thursday, the rupee had settled at 73.12 against the US dollar.

"Overall the sentiments are quite risk-on amid economic revival and reopening of the Western countries. Also, in India the improving trend of moderation in daily new Coronavirus cases is boosting risk sentiments," said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.10 per cent to 89.71.

The dollar index has continued the downtrend and there are less signs of the index bouncing at least in the short term.

"So, forex traders will monitor the Coronavirus situation and trend in the US dollar, and keep the spot within 72.50-73.50 with a negative bias," Gupta said.

Brent crude futures, the global oil benchmark, rose 0.95 per cent to USD 65.73 per barrel.

Foreign institutional investors were net buyers in the capital market on Thursday as they purchased shares worth Rs 71.04 crore, as per exchange data.

Meanwhile, with 2.59 lakh new cases recorded in a single day, India's total tally of COVID-19 cases climbed to 2,60,31,991 and the death toll climbed to 2,91,331 with 4,209 daily deaths, according to the Union Health Ministry data updated on Friday.

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