Rupee surges 57 paise to close at 75.09 on higher domestic equity markets, weak US dollar in overseas market

Mumbai: The Indian rupee surged 57 paise to close at 75.09 (provisional) against the US dollar on Thursday, amid higher domestic equity markets and a weak American currency in the overseas market. Forex traders said a positive start of domestic stocks supported the local unit. Moreover, investor risk appetite is improving as India could relax restrictions in many areas from 4 May. This is the fourth consecutive day of gain for the rupee, during which it has appreciated by 137 paise. At the interbank foreign exchange, the rupee opened at 75.17. During the session it touched an intra-day high of 74.94 and a low of 75.20. [caption id=“attachment_5114261” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] The domestic unit finally settled at 75.09, registering a rise of 57 paise over its previous close. On Wednesday, the local unit had settled at 75.66 against the US dollar. Traders said fears surrounding COVID-19 faded to some extent after an antiviral drug showed promise in treating coronavirus patients. “Also, several countries are easing lockdown restrictions which means the economies will start to get back on track,” said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services. Gupta further said, “there is still risk of a second wave of infection and India’’s macros are not attractive enough to bring in heavy dollar inflows. Thus, going ahead USD/INR spot may trade above the support of 74.50 towards 75.50/76.00”. Meanwhile, domestic stock exchanges were trading on a positive note with benchmark Sensex trading 830.25 points higher at 33,550.41, and the Nifty up by 248.80 points at 9,802.15. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.06 percent down at 99.50. Brent crude futures rose 7.59 per cent to $24.25 per barrel.