On Wednesday, the rupee rose 25 paise to 73.43 against the US dollar on foreign currency inflows and weak foreign exchange. In the interbank foreign exchange market, the domestic unit opened at 73.45 against the US dollar, and gained ground to touch a high of 73.43 against the greenback, a 25 paise increase from its previous close.
The rupee rose 37 paise to close at 73.68 against the US dollar on Tuesday. Meanwhile, the Dollar Index, which estimates the strength of the greenback against a basket of six currencies, was down 0.17 percent at 91.15.
“Record low real rates around the world are causing huge amounts of liquidity by central banks to chase assets. The dollar continues in circulation, ”said Abhishek Goenka, founder and CEO of IFA Global. Goenka further noted that safe haven assets like the US Treasury and Yen are performing.
“GST collection for the second successive month came above Rs 1 lakh crore (November GST collection came to Rs 1.05 lakh crore) which is heartfelt. However, bonds are expected to trade sideways until after RBI’s monetary policy on Friday, ”he added. Foreign institutional investors were net buyers in the capital market as they bought shares worth Rs 3,242.00 crore based on net data on Tuesday.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading down 180.48 points at 44,474.96, and the broader NSE Nifty fell 39.75 points to close at 13,069.30. The global oil benchmark, Brent crude futures, was down 0.76 percent at $ 47.06 a barrel.