Rupee logs 1st gain in four days; rises 18 paise to 72.91 against USD

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Mumbai, Jun 3 (PTI) The rupee snapped its three-day losing streak to end 18 paise higher at 72.91 against the US dollar on Thursday, buoyed by sustained foreign fund inflows into capital markets.

At the interbank forex market, the local unit opened on a weak note at 73.17 against the greenback and witnessed an intra-day high of 72.90 and a low of 73.18.

It finally ended at 72.91, registering a rise of 18 paise over its previous closing. On Wednesday, the rupee had settled at 73.09 against the US dollar.

Foreign institutional investors were net buyers in the capital market on Thursday as they purchased shares worth Rs 1,079.20 crore, as per exchange data.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03 per cent to 89.94.

Forex market will be keenly following the Reserve Bank of India (RBI) monetary policy meeting outcome scheduled to be announced on Friday, analysts said.

'Rupee traded strong amid positive fund flows into capital markets gave strength to rupee. RBI monetary policy status quo is expected to be neutral but the statement will be closely watched on Friday. The range for rupee can be 72.70 - 73.15 in the session ahead,' said Jateen Trivedi, Senior Research Analyst at LKP Securities.

According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the Indian rupee appreciated on Thursday tracking gains in the domestic equity market even as investors looked ahead to the US economic data to gauge the future path of monetary policy.

Brent crude futures, the global oil benchmark, rose 0.17 per cent to USD 71.47 per barrel.

On the domestic equity market front, the BSE Sensex ended 382.95 points or 0.74 per cent higher at 52,232.43, while the broader NSE Nifty advanced 114.15 points or 0.73 per cent to 15,690.35. PTI DRR MKJ

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