Rupee settles 4 paise lower at 73.11 against US dollar

By: |
January 1, 2021 6:51 PM

The local unit finally settled at 73.11, registering a fall of 4 paise over its previous close. On Thursday, the rupee spurted 24 paise to end at a nearly four-month high of 73.07 against the US dollar. Forex traders said the momentum for the currency is likely to stay low as no major economic data is expected to be released on the domestic as well as on the global front.

"The vaccine optimism will stay but next catalyst for the market is US Georgia runoffs, a Democratic sweep will mean expansionary Biden policy but if Republicans win then they would provide a check on policies.

Snapping its six-session winning streak, the rupee depreciated by 4 paise to settle at 73.11 against the US dollar on the first trading day of the New Year on Friday. At the interbank forex market, the domestic unit opened at 73.09 against the US dollar and witnessed an intra-day high of 73.02 and a low of 73.11.

The local unit finally settled at 73.11, registering a fall of 4 paise over its previous close. On Thursday, the rupee spurted 24 paise to end at a nearly four-month high of 73.07 against the US dollar. Forex traders said the momentum for the currency is likely to stay low as no major economic data is expected to be released on the domestic as well as on the global front.

“The vaccine optimism will stay but next catalyst for the market is US Georgia runoffs, a Democratic sweep will mean expansionary Biden policy but if Republicans win then they would provide a check on policies.

“We expect 72.90-73 to act as a strong support zone, only a break of which will push the price towards 72.50 zone, while 73.50 will act as an immediate resistance,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.29 per cent to 89.93.

On the domestic equity market front, the BSE Sensex ended 117.65 points or 0.25 per cent higher at 47,868.98, while the broader NSE Nifty advanced 36.75 points to 14,018.50.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,135.59 crore on a net basis on Thursday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, advanced 0.33 per cent to USD 51.80 per barrel.

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