Rupee recovers 7 paise to close at 74.64 on weak dollar

·3-min read

Mumbai, Jul 9 (PTI) The rupee gained 7 paise to end at 74.64 against the US currency on Friday, tracking weakness in the American currency in the overseas market.

However, a muted trend in domestic equity markets and surging crude prices restricted the gain in the domestic unit, forex dealers said.

At the interbank foreign exchange market, the rupee opened strong at 74.68 per dollar. It hovered in a range of 74.57 to 74.68 during the session before ending at 74.64 against the greenback, a gain of 7 paise over its last close.

On Thursday, the rupee had settled at 74.71 against the US dollar.

On weekly basis, the rupee gained 10 paise to mark its first weekly gain in the past six weeks. The rupee had declined by more than 3 per cent or 229 paise in the five weeks to July 2.

'The Indian rupee has trimmed some of the recent losses and is seen finding a lot of cushion around the 74.90 mark, after the steep depreciation witnessed last week.

'The recent US Fed minutes of the last meeting were slightly less hawkish as compared to what the markets were expecting, which has led to softening of the greenback and is underpinning the local unit,' Sugandha Sachdeva, Vice President - Commodity and Currency Research, Religare Broking Ltd said.

The dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.09 per cent to 92.32.

On the domestic equity market front, the BSE Sensex ended 182.75 points or 0.35 per cent lower at 52,386.19, while the broader NSE Nifty fell 38.10 points or 0.24 per cent to 15,689.80.

Brent crude futures, the global oil benchmark, surged 0.98 per cent to USD 74.85 per barrel.

Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 554.92 crore, as per exchange data “The USD/INR spot is not breaking the immediate resistance of 74.95-75 zone. For next week, the forex market focus will be on Zomato IPO and US CPI data along with fears over the global spread of delta variant,' Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services, said.

Zomato IPO will open for subscription on Wednesday, and it may attract FII’s participation. So, until the spot is trading below the resistance of 74.95-75, it will be slightly bearish. Only a break of 75 will push prices towards 75.25 zone, while 74.25-74 will act as strong supports, Gupta added.

Jateen Trivedi, Senior Research Analyst at LKP Securities said that crude prices can provide some trend going ahead to USDINR provided OPEC+ comes out with decision else delays in production data will again weaken the rupee.

'Going ahead rupee can be seen in a range of 72.45-72.95' 'Indian rupee marked first weekly gains after falling for five weekly loss,' Dilip Parmar, Research Analyst, HDFC Securities, said. PTI BAL MR MR

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting