Rupee versus dollar today: the rupee settled at 75.02 against the dollar
The rupee extended gains for the seventh day in a row, gaining 24 paise against the US dollar on Friday, December 24, before stabilizing at 75.02 (for now) – its highest level in three weeks as risk appetite improved as fears of fallout from the Omicron coronavirus variant waned.
In the interbank foreign exchange market, the domestic unit opened at 75.12 against the dollar and registered an intra-day high of 75.00. It witnessed and a low of 75.20. During an early trading session, the local unit gained 14 paise to 75.12 against the greenback.
On Thursday, December 23, the rupee climbed 28 paise to settle at 75.26 against the US currency. Meanwhile, the dollar index, which measures the dollar’s strength against the basket of six currencies, fell 0.06 percent to 96.01. Ahead of the holiday season and the extended long weekend in the United States, most major currency pairs are trading in tight margins, according to forex traders.
Mr. Amit Pabari, MD, CR Forex: “Risk-on sentiment still dominates despite high levels of COVID cases in the UK, Europe grapples with a tighter lockdown and now China has ordered a lockdown in Xi’an, a city with 13 million inhabitants in central China.
Following the improved sentiment, oil prices are also trading at the highest level since the WHO announced the new variant Omicron last month.
In the bond market, Indian 10-year yields are hovering near March 2020 levels and the market is discounting RBI’s aggressive turn. Overall, the coming period is sure to see higher volatility in the pair. We expect a short-term range for the USDINR of 74.50 to 76.00.”
In the domestic stock market, the BSE Sensex was down 190.97 points or 0.33 percent at 57,124.31, while the broader NSE Nifty fell 68.85 points or 0.4 percent to 17,003.75.
The three-day rally was broken as concerns about the Omicron variant spread and concerns about another lockdown sparked investor nervousness. Despite the intraday volatility, the Nifty managed to close above 17000. The index is still holding on to a lower top formation, pointing to weakness in the medium term.
Trading positioning suggests the index is likely to consolidate within the range of 16800 to 17250 levels before another breakout,” the analyst said. Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities Limited.
According to exchange data, the foreign institutional investors remained net sellers in the capital market on Thursday as they sold shares worth Rs 271.59 crore. Brent oil futures, the global oil benchmark, fell 1.16 percent to $75.96 a barrel.
