Rupee Vs Dollar Today: The rupee settled at 74.24 against the dollarThe rupee depreciated by five paise against the US dollar on Wednesday, August 25, to settle at 74.24 (provisional) tracking a firm American currency in the international markets. At the interbank foreign exchange market, the local unit opened flat at 74.20 and later declined to a low of 74.30 during the session. In an early trade session, the rupee slipped two paise to 74.21 against the greenback. On Tuesday, August 24, the domestic unit settled at 74.19 against the dollar. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04 per cent higher at 92.93. What analysts say:Mr Amit Pabari, MD, CR Forex:”All three major US stock indexes edged up while the dollar index remained consolidated around 93 levels as investors hope the FDA approval of the Pfizer & BioNTech covid-19 vaccine could boost vaccination rates in the US and get economic recovery back on track. Back home, so far inflows on account of various IPO’s and QIP’s have remained supportive of the rupee. That apart, SBI upwardly revising India’s growth projection to 18.5 per cent in the Q1 FY2022 had kept the mood uplifted.Surprisingly, despite domestic equities reaching a record high with Sensex at 56000 and Nifty at 16600 mark, the dollar-rupee was unable to break its crucial support of 74.10 levels. This reflects that the extent of RBI’s tolerance for rupee appreciation beyond 74.10 levels seems negligible. Also, the rising crude oil prices above the $70 mark amid supply disruptions have capped rupee gains.”Kshitij Purohit, Lead International & Commodities at CapitalVia Global Research Limited:” The USD/INR fell strongly to 74.10 at the open and plummeted 11 paisa / US dollar overnight due to decreasing uncertainty ahead of the Fed meeting in Jackson Hole on Friday this week. The dollar index declined from a high of 93.75 on 18/8/21 to the present level of 93.08, putting pressure on the currency pair and causing it to test the 74.00 support level more swiftly.The US dollar index rose from 93.75 on Friday to 93.08 today, causing Asian stock markets to increase in tandem with the good trend in the US market. Before the Federal Reserve’s annual economic symposium in Jackson Hole on Friday, the dollar stayed strong.Although the currency pair recovered from the losses caused by the gap-down opening, the trend remains bearish, and support in the range of 74.12-74.10 might be tested at any time.”Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities:“USDINR spot closed marginally higher around 74.24, in a lackluster day of trading. Volatility has become extinct in the pair as RBI continues to absorb $ flows. Going into Jackson Hole meeting starting tomorrow evening, we expect USDINR to remain within a range of 74.10-74.40 on spot.” Domestic Equity Markets Today:On the domestic equity market front, the BSE Sensex ended 14.77 points or 0.03 per cent lower at 55,944.21, while the broader NSE Nifty climbed 10.05 points or 0.06 per cent to 16,634.65.Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities””Benchmark index Nifty hit a fresh record high but failed to close above the 16700 mark due to profit booking at higher levels. Technically, post the strong pullback rally, the index has formed a double top kind of reversal formation near the 16700 resistance level, which is broadly negative for the market.However, the larger texture of the market is still bullish, but for day traders the 16700 levels would act as a major hurdle. Above the same, the uptrend could continue up to 16750-16790 levels.”According to exchange data, the foreign institutional investors were net sellers in the capital market on August 24 as they offloaded shares worth Rs 1,644.91 crore. Brent crude futures, the global oil benchmark, declined 0.15 per cent to $ 70.94 per barrel.
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