Rupee surges 19 paise to close at 72.77 against US dollar

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Mumbai, May 25 (PTI) The rupee strengthened by 19 paise to end at 72.77 (provisional) against the US dollar on Tuesday, tracking weakness in the American currency in the overseas market.

At the interbank forex market, the local unit opened at 72.85 against the greenback and witnessed an intra-day high of 72.75 and a low of 72.87.

It finally ended at 72.77 against the American currency, registering a rise of 19 paise over its previous close.

On Monday, the rupee had settled at 72.96.

'The Indian Rupee appreciated on the back of weakness in dollar. Dollar slipped amid decline in US treasury yields, rise in risk appetite in the global markets and expectation of poor economic data from the US. Expectation of strong global economic growth supported risky currencies,' said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.26 per cent to 89.61.

Rupee may trade in the range of 72.60 to 73.50 in next couple of sessions, Mukadam added.

Brent crude futures, the global oil benchmark, fell 0.50 per cent to USD 68.12 per barrel.

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 advanced 10.75 points or 0.07 per cent to 15,208.45.

Foreign institutional investors were net buyers in the capital market on Monday as they purchased shares worth Rs 585.36 crore, as per exchange data.

Further, the rupee gained strength as daily COVID-19 cases declined, traders said.

The single day rise in new coronavirus infections in the country fell below 2-lakh, taking the total tally of COVID-19 cases to 2,69,48,874, while the death toll rose to 3,07,231, according to the Union Health Ministry data updated on Tuesday. PTI DRR DRR ABM ABM

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