The rupee strengthened by 32 paise to end at 72.93 (provisional) against the US dollar on Tuesday, supported by positive domestic equities and weakening of the American currency in the overseas market. At the interbank forex market, the local unit opened at 73.16 against the greenback and witnessed an intra-day high of 72.91 and a low of 73.25.
It finally ended at 72.93 against the American currency, registering a rise of 32 paise over its previous closing. On Monday, the rupee had settled at 73.25 against the American currency.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.37 per cent to 91.96. “Rupee traded strongly above 73.00 as dollar index retraced some of its rally witnessed in the last few days. The dollar index which is traded around USD 92.4 retraced back to USD 91.90 giving the Indian rupee positive momentum, along with stable financial market participation,” said Jateen Trivedi, Senior Research Analyst at LKP Securities.
Trivedi further said that going ahead THE rupee can be seen trading between 72.70-73.15. Meanwhile, Brent crude futures, the global oil benchmark, rose 0.59 per cent to USD 68.64 per barrel.
On the domestic equity market front, the BSE Sensex ended 584.41 points or 1.16 per cent higher at 51,025.48, while the broader NSE Nifty advanced 142.20 points or 0.95 per cent to 15,098.40. Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 1,494.49 crore on Monday, according to exchange data.