Rupee Rallies 47 Paise To Settle 74 Against Dollar On Easing Global Oil Prices


Rupee vs Dollar Today: Rupee has settled at 74.88 against the dollar

The rupee strengthened 47 pips against the US dollar on Wednesday (20 October) and was flat at 74.88 (temporary) against the US dollar on Wednesday due to weakening world oil prices. In the interbank foreign exchange market, the domestic unit opened at 75.10 to the dollar and fluctuated between 74.83 and 75.13 during daily trading. In early trading, the domestic unit rebounded from the greenback by 26 paisa to 75.09.

The dollar index, which measures the strength of the US dollar against a basket of six currencies, jumped 0.12% to 93.84. Currency markets are closed on Tuesday 19 October due to the Id-E-Milad holiday.

According to forex traders, the appreciation of the US dollar in overseas markets and losses in the domestic stock market put pressure on the rupee. Today’s appreciation of the rupiah was largely supported by the decline in crude oil prices on the world market.

Analyst Comments:
Amit Pavali, MD, CR Forex:

“The safe-sky dollar hit a three-week low near 93.70 with monetary policy tightening in other countries expected to tighten more quickly to counter rising inflation and weaker-than-expected US economic data. Meanwhile, corporate performance sentiment was strong, US stocks and yields on US 10-year bonds increased to more than 1.65%.

Investor sentiment could slow as the pandemic slashes India’s GDP growth forecast by 25 basis points to 6%. Technically, the next support for the pair near 74.80, 75.50 remains strong resistance and will continue to integrate between 74.50 and 75.50 in the short term. ”

DVP, currency derivatives and interest rate derivatives from Kotak Securities Limited, Anindya Banerjee:

Spot USDINR fell 47 paisa to 74.87, its lowest level since Oct. 7 amid a sharp rise in the yuan and a fall in the US dollar index. Crude oil prices are stable – around $85 per barrel. The rupee has been a big loss in the Asian basket.

There is room for the rupee to appreciate further, especially if the US dollar index remains weak and global stock markets maintain trend risk. We expect a range of 74.50 to 75.20 in the short term. ”

Today’s internal stock market:

On the domestic stock market, the BSE Sensex index fell 456.09 points (0.74%) to 61,259.96 points, while the NSE Nifty index fell 152.15 points (0.83%) to 18,266.60.

Kotak Securities Limited, Head of Stock Research (Retail), Shrikant Chouhan:

“Market sentiment was weak throughout the trading session amid rising share-taking gains that rose in recent sessions. After a subdued hole, the benchmark Nifty breached the 18,400 daily support level and then held on for the whole day in the negative.

In the last two days, Nifty has corrected nearly 400 points and is currently trading near a significant corrective support level. We believe the index has completed the correction period and 18150 and 18200 can serve as sacred support for traders. At the same time there is a great opportunity for a quick rally to download at the levels 18350-18425. ”

According to stock market data, overseas institutional investors landed shares worth Rs 505.79, which resulted in a net sale in the capital market on October 19. Brent crude futures, the global oil benchmark, fell 0.83% to $84.37 a barrel.

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