Rupee Closes Marginally Higher At 75.53 Against Dollar

Rupee Vs Dollar: The rupee is down 3% against the dollar so far this year

The rupee ended marginally higher at 75.53 against the US dollar on Thursday, following four days of losses. It moved in a range of 25 paise, between 73.53 and 73.78 against the greenback, having begun the day weaker at 73.77 compared to its previous close of 73.58. Selling of dollars by exporters supported the rupee, however a gain in the greenback overseas limited the upside, according to analysts. 

The dollar index – which measures the US currency against six peers other than the rupee – appreciated as much as 0.34 per cent on Thursday, as market hopes for a US coronavirus aid package ahead of the presidential elections waned.

Domestic share markets ended lower amid selling pressure in financial and IT stocks, tracking broader market sentiment on concerns over a setback to US stimulus talks and a spike in global COVID-19 cases.

The S&P BSE Sensex index ended 0.37 per cent lower at 40,558.49 and the broader NSE Nifty 50 benchmark closed down 0.35 per cent at 11,896.45, both snapping a four-day winning streak.

Crude oil prices recovered a day after higher US gasoline inventories signalled a deteriorating demand outlook as coronavirus cases soar. Brent crude futures – the global benchmark for crude oil – climbed as much as 1.13 per cent to the $42.20 per barrel mark.  

Analysts say the rupee is expected to remain under pressure in the near term. 

“As the RBI has become active with its open market operations and there are inflows coming in the domestic capital markets… it is less likely that the (USD-INR)  pair will break an important 74.50 mark in the near future,” said Amit Pabari, managing director at forex advisory firm CR Forex Advisors.

At the current level, the rupee is down 3.01 per cent against the dollar so far this year. 

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