Rupee trades near 5-month high of 72.98 amid buoyant equities, FII inflows

Indian rupee, the domestic currency scaled a near five-month high of 72.98 per dollar on Thursday, in line with the buoyant equity market that hit new lifetime highs today and sustained foreign fund inflows.

Advancing its gains for the third straight session, rupee was 7 paise higher to trade at a level not seen since September 1, 2020 at the interbank forex market today over the previous close of 73.05 per American currency. FII bought 2289.05 into domestic equity market on Wednesday which supported rupee to close below psychological level of 73.00

Meanwhile, the dollar index, slipped 0.18 per cent to 90.31 against a basket of six currencies.

On the domestic equity market front, market indices continued trading at new highs on Thursday, with Sensex rising above the psychological key level of 50,000 and Nifty above 14,700 for the first time, in line with positive global equities. Sensex added 370 points to trade at 50,140 and Nifty gained by 100 points to 17,745. Sensex and Nifty hit fresh lifetime highs of 50,167 and 14,750, respectively.

Brent crude futures, the global oil benchmark, rose 0.36 per cent to USD 55.89 per barrel. Oil price continued to move up adding the previous day's gains on hopes for bigger stimulus which could positively impact fuel demand.

Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research said," All major currency like Singapore dollar, Japanese Yen, Australian dollar are positive against the US dollar this morning in Asian trade and extended the yesterday's rally. The US dollar closed negative against basket of currencies as risk appetite help up on optimism about massive stimulus under new US government. Support for Rupee spot breaks the resistance of 73.10 then it may go up toward 73.27. Support is at 72.82-72.68 levels for the spot pair. Resistance for the pair is 73.10. USDINR Jan future will trade in the range of 72.80-73.10 levels."

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