Rupee gains 7 paise to close at 75.58 against dollar on easing crude oil

Mumbai: The rupee on Monday rose by 7 paise to close at 75.58 against the US currency on easing crude oil prices and a weak dollar in overseas markets.
Forex traders said weak domestic equities, foreign fund outflows and concerns over rising COVID-19 cases restricted rupee gains.
The rupee opened on a flat note at the interbank forex market at 75.64 against the US dollar touched a high of 75.52 in day trade.
The unit finally settled at 75.58 against the US dollar, up by 7 paise over the previous close.
The number of COVID-19 cases around the world has crossed 1.01 crore and the death toll has topped 5.01 lakh.
In India, the death toll due to COVID-19 rose to 16,475 and the number of infections rose to 5,48,318, according to the health ministry.
Stock market indices fell up to 0.68 per cent at close due to concerns over rising coronavirus cases. The 30-share BSE index ended 209.75 points or 0.60 per cent lower at 34,961.52. The NSE Nifty settled 70.60 points or 0.68 per cent down at 10,312.40.
Foreign institutional investors were net sellers in the capital market, as they sold equity shares worth Rs 753.18 crore on Friday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 2.15 per cent to USD 40.14 per barrel.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell by 0.09 per cent to 97.34.
“A risk off tone dominates market sentiment at the start of the new week, with all major Asian equity indices in the red. This follows the recent rise in regional outbreaks of COVID-19 case increases, particularly in the US and other South Asian countries,” said Devarsh Vakil, Deputy Head of Retail Research, HDFC Securities.
However, the Asian currencies traded relatively steady amid weakness in dollar index. Dollar has started the week on the back foot with DXY sliding to lows of the 97.15, having been as high as 97.52 in early hours, Vakil added.
Going ahead the rupee is expected to trade steady with downside support around 76.5 and resistance at 75, Vakil said.
According to Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services, no major economic data is expected to be released on the domestic front and market participants remain cautious and await for more clarity on the ongoing tension between India and China.
Somaiyaa further added that “we expect the USDINR (Spot) could quote in the range of 75.40 and 76.05.”
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 75.4757 and for rupee/euro at 84.6264. The reference rate for rupee/British pound was fixed at 93.7101 and for rupee/100 Japanese yen at 70.47.

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