The rupee appreciated 19 paise against the US dollar on Tuesday, May 25, to settle at 72.77 (provisional) against the U.S. dollar on Tuesday, tracking weakness in the American currency in the global market. At the interbank foreign exchange market, the domestic unit opened at 72.85 against the dollar and registered an intra-day high of 72.75. It witnessed a low of 72.87. In an early trade session, the local unit gained 11 paise to 72.85 against the greenback. The rupee closed at 72.77 against the American currency, registering a rise of 19 paise over its previous close.
On Monday, May 24, the domestic currency settled at 72.96 against the dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.26 per cent to 89.61. According to traders, the rupee gained strength as the daily coronavirus cases declined in the country.
”$ rupee opening around 72.88 after falling to 72.96 yesterday. Dollar index also down. Most currencies and equities in a consolidation mode after the huge run-up seen in the last few days. CNH at its recent high of 6.41. Dollar being fairly and squarely beaten ensuring a higher opening for rupee. Exporters to sell near to 73.00 levels as RBI keeps absorbing the flows while importers to buy near term at 73.80 levels,” said Mr. Anil Kumar Bhansali, Head of Treasury – Finrex Treasury Advisors.
On the domestic equity market front, the BSE Sensex ended 14.37 points or 0.03 per cent lower at 50,637.53, while the broader NSE Nifty climbed 10.75 points or 0.07 per cent to 15,208.45.
“In a volatile trading session, markets failed to hold on to its early gains and ended on a mixed note. This means that the expiry pressure is higher in the market. Technology and FMCG stocks were the strengths of the market today, else the market would have closed in negative territory. The Nifty has made a higher bottom at 15163 and rebounded sharply to close above the previous day’s closing. It looks like the market is preparing to cross the all-time highest level, which is at 15431,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
According to exchange data, the foreign institutional investors were net buyers in the capital market on May 24 as they purchased shares worth Rs 585.36 crore. Brent crude futures, the global oil benchmark, fell 0.50 per cent to $68.12 per barrel.