Rupee recovers 13 paise to close at 73.61 against U.S. dollar

The rupee on Tuesday rebounded by 13 paise to close at 73.61 (provisional) against the U.S. dollar following a firm trend in domestic equities and losses in the American currency in the overseas market.

At the interbank Forex market, the local unit opened flat at 73.74 against the greenback. During the session, the domestic unit witnessed an intra-day high of 73.58 and finally settled at 73.61.

On Monday, the rupee had dropped by 26 paise to settle at a nearly four-week low of 73.74 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.14 % to 93.14.

“The Indian rupee recovered the lost ground in Tuesday’s trade after pullback in dollar and rebound in yuan. Rupee is also benefitting from bond inflows in the last couple of days,” said Dilip Parmar, research analyst, HDFC Securities.

Mr. Parmar further said that all eyes will be on Federal Open Market Committee (FOMC) outcome on Wednesday, Bank of England (BoE) meeting and Evergrande interest payment. This will keep risk appetite on tenterhooks with sharp swings both sides depending upon the outcome.

“Near term bias for USD/INR expected to consolidate in the range of 73.85 to 73.40,” he noted.

Brent crude futures, the global oil benchmark, rose 1.14% to $74.76 per barrel.

On the domestic equity market front, the BSE Sensex ended 514.34 points or 0.88% higher at 59,005.27, while the broader NSE Nifty advanced 165.10 points or 0.95% to 17,562.00.

Foreign institutional investors were net buyers in the capital market on Monday as they purchased shares worth ₹ 92.54 crore, as per exchange data.