Rupee climbs for 3rd day, up 12 paise against USD

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Mumbai, Mar 12 (PTI) Extending its gaining streak for the third day in a row, the Indian rupee advanced by another 12 paise to close at 72.79 against the US dollar on Friday amid some easing of crude oil prices.

At the interbank foreign exchange, the Indian unit opened at 72.66 but surrendered some gains as the trade progressed and closed the session at 72.79 -- showing a rise of 12 paise to the dollar.

In the last three sessions, the Indian currency has gained 46 paise against the American currency. On a weekly basis, the rupee has gained 23 paise or 0.31 per cent.

Forex market was closed on Thursday on account of ‘Mahashivratri’.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.57 per cent to 91.94.

Global oil benchmark Brent crude futures fell 0.13 per cent to USD 69.53 per barrel.

On the domestic equity market front, the BSE Sensex slumped 487.43 points or 0.95 per cent to close at 50,792.08, while the broader NSE Nifty ended lower by 143.85 points or 0.95 per cent at 15,030.95.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 15.69 crore on Wednesday, according to exchange data.

'The Indian rupee appreciated on Friday and strengthened for a second week against the dollar supported by upbeat risk appetite in the regional equities and currencies boosted by hopes of a quick economic rebound,' said Sriram Iyer, Senior Research Analyst at Reliance Securities.

The rupee hit an intra-day high of 72.63 but trimmed losses on the back of intervention from the Reserve Bank of India, he added.

'Additionally, foreign investors have bought net USD 900 million in Indian equities so far this month and lent support. Meanwhile, appreciation bias was also limited as the dollar rose in the Friday’s afternoon session in Asia, supported by a spike in Treasury yields amid worries over high inflation,' he said.

Dilip Parmar, Research Analyst, HDFC Securities, said on the domestic front, focus will remain on inflation and industrial output data which could dampen the rupee bull’s sentiment.

'Spot USD-INR is expected to trade with negative bias with downside support is placed at 72.60 and resistance at 72.98, the 50 Days simple moving average,' he said.

Forex market traders will closely watch US treasury bond yields, risk sentiments and US-China trade relations for short-term trade ahead of next week's FOMC meeting, he added. PTI MKJ MKJ ABM ABM