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Rupee Declines To 73.11 Against Dollar On First Session Of New Year

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The rupee declined by four paise against the dollar to settle at 73.11, snapping its upward trend.

On the first trading session of the New Year, the rupee declined by four paise against the US dollar to settle at 73.11, on Friday, January 1, 2021, snapping its six-session upward surge. Market participants remained on the sidelines due to a lack of fresh cues. At the interbank foreign exchange market, the local unit opened at 73.09 against the dollar and registered an intra-day high of 73.02. It witnessed a low of 73.11. In the early trade session, the domestic currency slipped by four paise at 73.11 against the dollar. It registered a decline of four paise over its previous close. On Thursday, December 31, the local unit gained as much as 24 paise to close at a nearly four-month high of 73.07 against the American currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.29 per cent to 89.93. According to forex traders, the momentum for the currency is likely to stay low as no major economic data is expected to be released on the domestic as well as on the global front. 

”The rupee opened around 73.08 as cash demand was absent today; it being a US holiday. Range 73.00/73.50. RBI present at 73.00 in currency futures. Year-end selling all done. But flows will continue. So all uptics to be sold as an when we get it. Importers to keep hedging all near-term imports. Stock markets still up as no corrections are coming while investors keep waiting for a correction,” said Anil Kumar Bhansali, Head – Treasury, Finrex Treasury Advisors. 

On the domestic equity market front, the BSE Sensex ended 117.65 points or 0.25 per cent higher at 47,868.98, while the NSE Nifty surged 36.75 points to 14,018.50. ”Indian markets are relentlessly scaling new highs with Nifty-50 breaching the 14,000 level and BSE Sensex close to the 48,000 mark. Global cues have remained positive for most Asian markets with MSCI Emerging Markets reporting 2.9% gains this week,” said Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities. 

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According to provisional exchange data, the foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,135.59 crore on a net basis on December 31.  Brent crude futures, the global oil benchmark, advanced 0.33 per cent to $ 51.80 per barrel. 

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