Rupee hits 3-week high ahead of Economic Survey, Union Budget

0
65

NEW DELHI: Extending its winning streak for the fifth straight session, the rupee hit its three-week high in early trade on Tuesday ahead of the Economic Survey and Union Budget. The currency opened nearly 11 paise higher at 67.84 against dollar on sustained selling of American currency by banks and exporters.

Meanwhile, the domestic equity market opened on a flat note following mixed global cues. The 30-share BSE Sensex opened 18.36 points up at 27,867.92, while the 50-share NSE Nifty index opened 3.30 points down at 8629.45.

The local currency on Monday settled 8 paise higher at 67.95 against dollar.

Mustafa Nadeem, CEO, Epic Research said, “A decline in the US dollar Index aided the positive momentum as the index declined from 103 to 100.5 levels. Technically, USD INR is in sideways momentum and made a flag pattern. On the higher side resistance is seen at 68.4 while support comes at 67.8. A break out in the flag pattern will further provide the momentum in currency market. A lot will depend on government’s policies and the Union Budget in the near term.”

According to Nirmal Bang Commodities, rupee is expected to trade in the range of 67.85-68.10 against dollar on Tuesday. Rupee was trading nearly 8 paise up at 67.87 against dollar around 9.15 am (IST).

Government bonds gave up early gains and fell for the first time in six sessions on Monday, as investors awaited cues on the government’s fiscal consolidation path in the Union Budget. The benchmark 6.97% 2026 bond yield rose to 6.41 per cent from 6.40 per cent in the previous session.