The rupee surged by 77 paise to an intra-day high of 70.6875 per dollar today from its Tuesday's close at 71.4613 against the greenback.
The Indian rupee gained past the 71 per dollar mark to hit a high of 70.69 against the US dollar today, the highest level since August 30. Easing crude oil prices, along with inflow of foreign funds and weakness in the US dollar, helped the rupee to gain for the seventh consecutive session on Thursday. The rupee surged by 77 paise to an intra-day high of 70.6875 per dollar from its Tuesday’s close at 71.4613 against the greenback, Bloomberg data showed. Forex market was closed on Wednesday on account of Eid-e-Milad.
“After five consecutive daily pullbacks, yesterday dollar index managed to regain some buying interest and reclaim the 96.70 levels and above, extending the rebound from the earlier test of the 96.00 levels. Indian Rupee meanwhile continues to appreciate against US Dollar thanks to fall in crude oil prices,” Bhavik Patel, Senior Technical Analyst, Tradebulls Securities, told FE Online.
According to Patel, the Indian currency is benefitting from fall in crude oil prices and inflows in the equity market. “On technical levels, 70.80-70.60 is where we expect the rupee to bottom out. Technical indicators still confirm bearish bias for rupee i.e. we expect INR to test levels of 70.80 before bouncing. The trend reversal in the currency will only come above 72.20 in Future. Till then Indian rupee will have an advantage against US dollar,” he added.
The domestic currency had opened at a fresh 11-week high today, rising by 35 paise to 71.11 per US dollar. At the interbank forex market, the domestic currency opened higher at 71.12/$ and surged further to 71.11 against the American currency, showing a rise of 35 paise over its previous close of 71.46 against the dollar on Tuesday. In the last six sessions, the rupee had gained nearly 150 paise against the dollar.
Meanwhile, the Indian stock market extended losses for the third consecutive session today, with the Sensex closing 218.78 points or 0.62% lower at 34,981.02 points. The other benchmark index, NSE Nifty, closed below the 10,550-mark. Globally, oil prices fell on Thursday after US crude inventories swelled to their highest level since December stoking concerns about a global glut but OPEC talk of an output reduction limited losses, said a Reuters report.
The Indian stock markets, forex and commodities markets will remain closed tomorrow, November 23 (Friday), on account of Gurunanak Jayanti.