16 Apr , 2021 By : Kanchan Joshi
Indian rupee today zoomed against the US dollar, supported by softening US yields and improving risk appetite. The rupee rose 58 paise to finish at 74.35 against the American currency. The rupee had settled at at 74.93 against the American currency on Thursday.
"The Indian rupee appreciated on Friday against the U. Dollar tracking softening yields and firm risk appetite in the region. RBI’s intervention also aided the local unit," said Sriram Iyer, Senior Research Analyst at Reliance Securities.
For the week, the rupee strengthened by 0.5% this week.
"Technically, the USD-INR spot ended on negative note holding resistances near 74.50 and 74.70 levels. However, if the pair trades below 74.30 levels on Monday we could see a downside move up to 74.00 levels," he added.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.11% to 91.52.
On the domestic equity market front, the BSE Sensex ended 28.35 points higher at 48,832.03.
Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services, said: “Due to the rising coronavirus cases in India the outlook for rupee still looks to be gloomy. But the weakness in dollar and Fed’s willingness to tolerate more inflation will keep the USD-INR spot lower and we expect it to trade in between 74-75.50 next week."
US Treasury yields on Thursday dived to one-month lows as a possible safe-haven bid related to increased U.S.-Russia tensions, along with Japanese buying and technical factors, helped overshadow better-than-expected economic data, said analysts.
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