The rupee recovered most of its initial losses and settled at 4 paise at 74.43 (tentative) against the US dollar on Tuesday, following a positive trend in domestic stocks and lowering crude oil prices. In the interbank forex market, the local unit opened at 74.48 against the greenback and saw an intraday high of 74.38 and a low of 74.57.
It ultimately finished at 74.43 against the US dollar, posting a decline of just 4 paise from its previous close of 74.39. The Indian rupee recovered its opening loss and ended on a flat note after a short-term rebound in domestic stocks. Strong Asian currencies, falling crude oil prices and the stable dollar index supported the local unit, ”Dilip Parmar, research analyst, HDFC Securities, mentioned.
Parmar further added that the USD / INR spot is expected to consolidate in a narrow 74-74.70 range amid mixed global and domestic signals. “There were foreign secondary market outflows, the dollar index soaring higher, and at the same time, we could see the central bank selling dollars for month-end dollar demands.” , did he declare.
On the national stock market front, the BSE Sensex index finished up 198.44 points or 0.34% to 58,664.33, while the broader NSE Nifty index rose 86.80 points or 0.5% at 17,503.35.
Futures on Brent crude, the world’s benchmark for oil, fell 0.97% to $ 78.93 per barrel.
The dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.14 to 96.41. Foreign institutional investors were net sellers in the capital market as they unloaded shares worth Rs 3,438.76 crore on Monday, the exchange data showed.