Rupee extends gains for 4th day; rises 29 paise to 74.07 against USD

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Mumbai, Apr 29 (PTI) The rupee rose by 29 paise to close at 74.07 against the US dollar on Thursday, extending gains for the fourth straight session amid a positive trend in domestic equities.

At the interbank forex market, the local unit opened at 74.20 against the greenback and witnessed an intra-day high of 73.94 and a low of 74.23.

It finally ended at 74.07 against the American currency, registering a rise of 29 paise over its previous closing. On Wednesday, the rupee had settled at 74.36.

This is the fourth straight session of gain for the rupee, during which it has appreciated by 94 paise.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.09 per cent to 90.69.

Brent crude futures, the global oil benchmark, rose 1.07 per cent to USD 67.99 per barrel.

On the domestic equity market front, the BSE Sensex ended 32.10 points or 0.06 per cent higher at 49,765.94, while the broader NSE Nifty advanced 30.35 points or 0.20 per cent to 14,894.90.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 766.02 crore on Wednesday, according to exchange data.

'The Indian rupee appreciated against the US dollar for the 4th straight session this Thursday supported by the continuation of ultra-loose monetary policy and as the Fed chairman Powell quashed talks for tapering bond purchases and kept the dollar near March lows,' said Sriram Iyer, Senior Research Analyst at Reliance Securities.

Regional currencies were stronger against the US dollar and also lifted sentiments.

'Technically, the USD-INR Spot pair has given a sharp correction and ended near 74.00 levels. Supports are at 73.90 and 73.85 levels. Resistances are at 74.12-74.22 levels. The USD-INR Spot pair could trade in a range of 73.90-74.15 levels,' Iyer noted.

In the overseas markets, the US dollar rebounded in afternoon trade, tracking a rebound in the bond yields.

Markets now could track the release of the US GDP and jobless claims data due later.

Gaurang Somaiyaa, Forex and Bullion Analyst, Motilal Oswal Financial Services, said the dovish US Federal Reserve policy statement led to the move in the currency.

'In line with expectation, the Federal Reserve held rates steady and made no changes in its bond buying program and gave no sign it was ready to reduce its support for the recovery,' he said.

'Focus will shift to advance GDP number from the US and better-than-expected number could support the greenback at lower levels. We expect the USD-INR (Spot) to trade sideways and quote in the range of 73.80 and 74.50,' Somaiyaa noted. PTI DRR DRR ABM ABM