Rupee Ends Marginally Higher At 76.16 Against Dollar

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Rupee Ends Marginally Higher At 76.16 Against Dollar

Rupee Vs Dollar: The rupee gained to as high as 76.11 against the dollar during the session

Rupee Vs Dollar Today: The rupee registered mild gains against the US dollar on Wednesday, remaining near a six-week low registered the previous day. It moved in a range of 76.11-76.26 during the four-hour session, having started the day unchanged from its previous close of 76.21 against the greenback. The rupee shut shop at 76.16 for the day. At the current level, it is down 6.73 per cent against the US currency so far this year. Analysts say the rupee is expected to continue to trade in a narrow range in the near term. 

Domestic stock markets pushed higher in afternoon deals on Wednesday backed by buying interest in banking and automobile shares.

The S&P BSE Sensex index bounced back 600.7 points from an intraday low of 33,332.96 registered in morning to touch 33,933.66 on the upside in afternoon deals. The broader NSE Nifty 50 benchmark moved to as high as 10,003.60, having slid to has low as 9,833.80 earlier.

Late on Tuesday, the Indian army said 20 of its soldiers had been killed in clashes with Chinese troops at Galwan Valley in Ladakh.

“Geopolitical risk premium is not something rupee is used to,” brokerage Kotak Securities said in a note. However, the stand-off between Indian and Chinese forces is adding to that risk premium, it added.

The dollar index – which gauges the greenback’s performance against six currencies – was last seen trading up 0.04 per cent, having risen 0.14 per cent earlier.

“We may see nationalised banks offering dollars at higher levels to smoothen volatility. The US dollar has strengthened after much-better-than-expected May retail sales data,” said Abhishek Goenka, founder and CEO of forex advisory firm IFA Global.

US retail sales bounced back sharply in May, data showed. However, new infections have hit record highs in six US states, and China cut flights and closed schools to contain a fresh outbreak in Beijing.

“Globally, the sentiment continues to be in favor of risky assets,” Mr Goenka added.

Meanwhile, international crude oil prices rose on Wednesday on hopes for economic recovery and for a clinical trial showing a cheap steroid could help save some critically ill coronavirus patients, but fears of a second wave of the virus curbed gains.

Brent crude futures – the global benchmark for crude oil – were last seen trading 0.7 per cent higher at $41.25 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.

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