The rupee surged by 30 paise against the US dollar
The rupee zoomed by 30 paise against the US dollar on Tuesday, December 8, to settle at 73.60 (provisional), amid heavy buying in domestic equities and buoyed by foreign fund inflows. At the interbank foreign exchange market, the local unit opened at 73.83 against the dollar and registered an intra-day high of 73.59. It witnessed a low of 73.83. In early trade, the rupee surged 10 paise to 73.80 against the dollar. The domestic unit finally closed at 73.60 against the American currency, recording a rise of 30 paise over its previous close. On Monday, December 7, the local unit declined by 10 paise to settle at 73.90 against the US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was up by 0.01 per cent to 90.80. According to exchange data, the foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 3,792.06 crore on a net basis on December 7.
“The rupee traded strong on the back of inflow of money into capital markets as rupee took support near 73.95 levels,” Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities, said.
On the domestic equity market front, the BSE Sensex closed at 181.54 points or 0.40 per cent higher at 45,608.51, while the NSE Nifty jumped 37.20 points or 0.28 per cent to 13,392.95.
“As per Japanese candlestick formation, the Nifty 50 index has formed Doji formation at the top of the current up move. It is an indication of indecisive activity after a rally of 650 points in Nifty 50 index. On Wednesday, the Nifty 50 index should trade in the range of 13460 and 13300. Below 13350 levels, the index could fall to 13250 or 13200 levels,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
”On the higher side, 13460 would act as the strongest hurdle and above that, the chances of hitting 13550 levels would turn bright. Traders need to be extra cautious in the market as small-cap stock are participating heavily in the momentum of the market. Buying is advisable only on major dips at around 13200/13180 levels,” he added.
Brent crude futures, the global oil benchmark, fell 0.35 per cent to USD 48.62 per barrel.