Rupee Declines 27 Paise At 74.37 Against Dollar Amid Stronger American Currency

Rupee Vs Dollar Today: The rupee settled at 74.37 against the dollar

Registering losses for the second straight session, the rupee depreciated 27 paise against the US dollar on Tuesday, June 22, to close at 74.37 amid a stronger American currency. At the interbank foreign exchange market, the local unit opened weaker at 74.18 against the dollar and touched an intra day high of 74.05. It witnessed a low of 74.40. In an early trade session, the domestic unit declined 10 paise to 74.20 against the greenback. The rupee lost ground in the session, shed 27 paise to settle at 74.37 against the American currency today.

On Monday, June 21, the local unit settled at 74.10 against the dollar. The domestic currency has lost 51 paise in the two trading sessions to Tuesday, June 22. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.22 per cent to 92.09.

”The rally in the dollar index from 90.40 to 92.40 sparked after the hawkish Fed seems to be disappearing as risk aversion sentiment cooled-off on jump in US equities by 1.5 per cent, recovery in the Asian equity markets and so into the US dollar peer currencies….Earlier, it was expected that the hawkish Fed will call flows back to the treasuries from emerging markets, but after looking at FII flows into India, it negates that views upto a maximum extent,” said Mr Amit Pabari, MD, CR Forex.

”Along with FII inflows, Indian Bank QIP worth Rs 4,000 crore could be in favor of rupee. However, RBI and oil importer’s bid on every dip will not allow the USDINR pair to break 73.50-70 zone easily. Under this state, we expect that the pair to consolidate in the range of 73.50-74.50 over the short term before any triggers open the doors towards 75.20-75.50 levels,” he added.

On the domestic equity market front, the BSE Sensex ended 14.25 points or 0.03 per cent higher at 52,588.71, while the broader NSE Nifty advanced 26.25 points or 0.17 per cent to 15,772.75.

“The Nifty touched the previous high (15900/53057) today and invited profit taking. Nifty / Sensex made a gradual correction from 15900/53057 to 15750/52590. If we look at the market on a closing basis, it can be called steady closing and the main reason behind this is the testimony of the Fed in the US. monthly/quarterly expiration is also a big trigger. 15670/52300 and 15800/52800 are important trading zones for the market,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

According to exchange data, the foreign institutional investors were net sellers in the capital market on June 21 as they offloaded shares worth Rs 1,244.71 crore. Brent crude futures, the global oil benchmark, fell 0.72 per cent to $ 74.36 per barrel.