The rupee strengthened by three paise against the US dollar on Wednesday, December 9, and settled at 73.57 (provisional), supported by heavy buying in domestic equities and foreign fund inflows. At the interbank foreign exchange market, the local unit opened at 73.58 against the dollar and registered an intra-day high of 73.49. It witnessed a low of 73.61. In an early trade session, the local unit surged by 11 paise to 73.49 against the dollar. Closing at 73.57 against the American currency, the rupee recorded a rise of three paise over its previous close. On Tuesday, December 8, the domestic unit surged by 30 paise and closed at a one-and-a-half month high of 73.60 against the greenback.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 0.24 per cent down at 90.74. According to traders, the weakening of the American currency in the overseas market also supported the local unit.
“Globally, market sentiments are improving as traders take cues from positive news on COVID-19 vaccines and ongoing efforts to launch more fiscal stimulus. In order to thwart a deep and elongated recession, worldwide lawmakers have released a barrier of monetary and fiscal stimulus as the coronavirus sealed international borders and also resulted in leading millions unemployed,” said Mr. Rahul Gupta, Head of Research-Currency, Emkay Global Financial Services.