Mumbai, April 29 (PTI): The rupee appreciated by 11 paise to close at 76.50 against the US dollar on Friday as the greenback retreated from its 20-year high.
Expectations of foreign fund inflows in LIC IPO which will open next week, and possible central bank's intervention also supported the rupee sentiment.
At the interbank forex market, the domestic unit opened at 76.62 against the US dollar. It moved in the range of 76.63 to 76.29 during the day trade.
The rupee finally closed at 76.50, registering a rise of 11 paise over its previous close. On Thursday, the rupee had settled at 76.61 against the US currency.
According to HDFC Securities Research Analyst Dilip Parmar, the rupee appreciated on the expectation of better inflows, a retreat in the dollar index and a rebound in risk assets.
"Market participants are expecting good inflows in LIC IPO after the recent oversubscription of Campus Activewear," Parmar said.
Moreover, the rupee has shown resilience among Asian currencies on the back of central bank intervention and inflows, he said.
"Dollar index is due for some consolidation under 104, given the technical indicators are registering some overbought readings. Bidders are waiting for a dip and positioning for a rally on the back of hawkish Federal Reserves and policy divergence with other developed nations," he noted.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.6 per cent lower at 102.98.
The dollar had surged to a 20-year high on Thursday due to concerns over growth in China and Europe.
"The Indian rupee has managed to eke out gains, finding a cushion at the key 76.70 mark even as there has been a relentless rise in the Dollar Index, which is still weighing on the domestic currency," said Sugandha Sachdeva, Vice-President - Commodity and Currency Research, Religare Broking Ltd.
According to Jateen Trivedi, Senior Research Analyst at LKP Securities, the rupee rose to 76.50 on the back of positive capital market participation in the first two sessions.
"Rupee has headwinds ahead of the FED's policy meeting due in the first week of May. Technically rupee is trading below 20dma which is acting as stiff resistance at 76.50," Trivedi said.
On the domestic equity market front, the 30-share BSE Sensex ended 460.19 points or 0.80 per cent lower at 57,060.87, while the broader NSE Nifty fell 142.50 points or 0.83 per cent to 17,102.55.
Brent crude futures, the global oil benchmark, inched up 1.78 per cent to USD 109.51 per barrel.
Foreign institutional investors remained net buyers in the capital market on Thursday as they purchased shares worth Rs 743.22 crore, according to stock exchange data.
Disclaimer: This story is auto-generated from news agency feeds and has not been edited by The Morung Express.
Source: PTI
