Rupee spurts 31 paise to nearly 2-week high against USD, rises for 4th day

Mumbai: Rising for a fourth straight session, the rupee surged by 31 paise to close at a nearly two-week high of 75.59 against the US dollar on Tuesday as positive domestic equities and a weak American currency in the overseas markets boosted investor sentiment.
Risk sentiment recovered in global markets, helping riskier assets and emerging currencies post gains against the dollar, analysts said.
At the interbank forex market, the domestic unit opened strong at 75.74 against the greenback and witnessed an intra-day high of 75.41 and a low of 75.74 during the day’s trade. It finally ended at 75.59 a dollar, the highest closing level since December 8.
In the previous session, the rupee had settled at 75.90 against the US dollar. Aided by low crude prices, the local unit has appreciated by almost 1 per cent or 73 paise in the four sessions to Tuesday.
“Indian rupee continued its upward momentum for a fourth day in a row as dollar index retracted while risk sentiment recovers. The RBI was absent over the past few weeks, but yesterday’s announcement of the auction of VRRR worth Rs 2 lakh crore on Wednesday indicated policy normalisation.
Rupee has seen pullback from its 20 months lows but difficult to say that pain is over as foreigners are continuously selling and Fed is heading for rate hike as early as the first quarter of 2022, Dilip Parmar- Research Analyst, HDFC Securities, said.

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