Rupee rises 21 paise to 73.32 amid weak dollar, positive equities

Indian rupee, the currency benchmark strengthened by 21 paise to 73.32 per dollar in  Monday's opening deals, supported by weak US currency and positive domestic equities.

The domestic unit opened at 73.40 per dollar and gained further ground to touch 73.32 against the US dollar, registering a rise of 21 paise over its previous close of 73.53 per dollar.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.15 per cent to 93.19.

Meanwhile, a COVID-19 vaccine is likely to be available by early next year and the government is considering its emergency authorisation for high-risk people, Union Minister Harsh Vardhan Sunday said, asserting he will take the first shot to address any trust deficit over its safety.

According to a Health Ministry statement, he said while no date has been fixed for the launch of a vaccine, it may be ready by the first quarter of 2021, and made available first to those who need it the most, irrespective of their paying capacity.

On the domestic equity market front, benchmark indices Sensex and Nifty turned bullish on Monday, tracking positive cues from global markets, after closing flat in the previous session. Sensex gained 282 points to 39,137 and Nifty gained 78 points to 11,542.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,175.81 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 724.31 crore in the Indian equity market on 11 September, provisional data showed.

Brent crude futures, the global oil benchmark, rose 0.38 per cent to USD 39.98 per barrel. Oil price gained in a small way on Friday as gains were kept under check as investors expected global glut to last long if demand continues to weaken.

On oil prices, Anuj Gupta , DVP- Commodities and Currencies Research, Angel Broking said," As per reports from the U.S. Energy Information Administration (EIA), Crude inventory levels increased by 2.0 million barrels in the week ending on 4th September'20. Oil prices extended the losses after top Crude exporter, Saudi Arabia, trimmed the Official Selling Price (OSP) to Asia for the month of October'20 considering the falling demand. OPEC & its allies are scheduled to meet on 17th September to review the current Oil market scenario.

He added, "OPEC+ trimmed the production cuts down to 7.7 barrels per day since August considering the growing demand. However, surge in covid19 cases around the globe clouded the outlook for Crude. Concerns over bleak global demand and a slower than expected economic recovery might push Crude prices lower."

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