The rupee snapped its three-session losing streak to settle 19 paise higher at 74.79 (provisional) against the US dollar on Thursday, tracking a positive trend in domestic equities and a decline in crude oil prices.
At the interbank forex market, the local unit opened at 74.77 against the greenback and witnessed an intra-day high of 74.70 and a low of 74.93.
It finally ended at 74.79 against the American currency, registering a gain of just 19 paise over its previous close.
On Wednesday, the rupee suffered its biggest single-day drop in six months, losing 54 paise against the US dollar to end at 74.98.
"The Indian rupee appreciated after falling for three days in row and touching more than five months low. Profit booking in crude oil prices and dollar index and recovery in riskier assets supported local currency to rebound from psychological level of 75,” HDFC Securities Research Analyst Dilip Parmar said.
Market sentiment remains bearish for rupee but short-term recovery cannot be ruled out after the sell-off in the last couple of days.
In near term, spot USDINR is having support at 74.50 and resistance at 75, Parmar said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.06 per cent to 94.20.
On the domestic equity market front, the BSE Sensex ended 488.10 points or 0.82 per cent higher at a 59,677.83, while the broader NSE Nifty advanced 144.35 points or 0.82 per cent to close at 17,790.35.
Brent crude futures, the global oil benchmark, fell 1.07 per cent to USD 80.21 per barrel.
Foreign institutional investors were net sellers in the capital market on Wednesday as they offloaded shares worth Rs 802.81 crore, as per exchange data.
Source:moneycontrol.com