Rupee gains 20 paise to close at 76.42 against US dollar

At the interbank forex market, the local unit opened at 76.27 against the greenback and witnessed an intra-day high of 76.07 and a low of 76.46.

Mumbai: The rupee appreciated by 20 paise to close at 76.42 (provisional) against the US dollar on Thursday, supported by positive domestic equities and trends in state election results. At the interbank forex market, the local unit opened at 76.27 against the greenback and witnessed an intra-day high of 76.07 and a low of 76.46. The rupee finally finished at 76.42, registering a rise of 20 paise over its previous close.

On Wednesday, the rupee had appreciated 38 paise to close at 76.62 against the US dollar following a retreat in crude oil prices and rebound in domestic equities. Counting of votes was underway on Thursday in five states where assembly polls were held recently -- Uttarakhand, Uttar Pradesh, Punjab, Goa and Manipur.

The BJP is headed for a second straight win in politically crucial Uttar Pradesh and dominated the trends chart in three other states, while the Aam Aadmi Party readied for a landslide win in Punjab. The rupee gained as risk appetite rebounded, while haven currencies slumped, said Dilip Parmar, Research Analyst, HDFC Securities.

Geopolitical risks have also begun to reverse course and commodities cooled off, and emerging market currencies and equities advanced. In the near-term, the rupee is expected to consolidate in the range of 76 to 76.70, Parmar added. Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, rose 0.13 per cent to 98.09.

Brent crude futures, the global oil benchmark, spurted 4.76 per cent to USD 116.43 per barrel. On the domestic equity market front, the BSE Sensex ended 817.06 points or 1.50 per cent higher at 55,464.39, while the broader NSE Nifty surged 249.55 points or 1.53 per cent to 16,594.90. Foreign institutional investors remained net sellers in the capital market on Wednesday as they offloaded shares worth Rs 4,818.71 crore, as per stock exchange data.

PTI