The rupee rebounded from yesterday’s lows and inched higher by two paise against the US dollar on Thursday, September 2, to settle at 73.06 (provisional) amid a sustained rally in domestic equities. At the interbank foreign exchange market, the domestic unit opened at 73.04 against the dollar and registered an intra-day high of 72.96. It witnessed a low of 73.13. In an early trade session, the local unit inched higher by six paise to 73.02 against the greenback.
The rupee closed at 73.06 against the American currency, registering a gain of two paise against its previous close. On Wednesday, September 1 the domestic currency snapped its four-day winning streak and settled lower to 73.08 against the dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.06 per cent to 92.39.
Mr Amit Pabari, MD, CR Forex:
”Globally, the dollar index erased its gains to trade near 92.50 levels after the ADP employment report showed only fewer jobs were added in the US private sector than expected in the month of August. However, ISM manufacturing data pointed to some recovery after contracting last month. The upcoming U.S. payrolls report Friday may offer some clues on their economic outlook. If more numbers are added we may see reversal in dollar and some guide on timing of tapering.
So far, rupee had been supported majorly on account of corporate and IPO inflows and the absenteeism from intervention in the spot market by the BIG bull. However, with rupee not being able to cap gains beyond 72.90 levels and moving back towards 73.15 levels, suggest that RBI could be back in action on downside. Going ahead, it will be watchful whether RBI continues the loosening grip or hovers back to pack the dollars.”
On the domestic equity market front, the BSE Sensex ended 514.33 points or 0.90 per cent higher at a lifetime high of 57,852.54, while the broader NSE Nifty climbed 156.90 points or 0.92 per cent to close at record 17,233.15.
According to exchange data, the foreign institutional investors were net buyers in the capital market on September 1 as they purchased shares worth ₹666.66 crore. Brent crude futures, the global oil benchmark, rose 0.32 per cent to $71.82 per barrel.