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Last Updated : Jul 02, 2020 04:22 PM IST | Source: Moneycontrol.com

Rupee at more than 3-month high, could appreciate to 74.50/USD

The rupee appreciated by 185 paise from its highest closing level of 76.86 a dollar seen on April 16, 2020.

The Indian rupee breached 75 mark against the US dollar intraday and closed at more than three-month high on July 2 following strong equity market sentiment and progress on the vaccine front.

The currency closed at 75.01 a dollar on July 2, the highest level since March 27, rising 58 paise compared to previous close of 75.59 a dollar.

The rupee appreciated by 185 paise from its highest closing level of 76.86 a dollar seen on April 16, 2020.

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"Today, the rupee traded above 3-month high on the expectation of positive outcome over India-China tension, and positive equity markets and progress on the vaccine front," Anuj Gupta, DVP–Commodities & Currencies Research at Angel Broking told Moneycontrol.

He expects rupee may trade positive further and it may test 74.70 to 74.50 levels towards appreciation.

Indian equity markets rallied smartly today following strong global cues amid coronavirus vaccine hopes. The Nifty50 rallied 121.70 points or 1.17 percent to close at 10,551.70 and the BSE Sensex rose 429.25 points or 1.21 percent to 35,843.70.

"Rupee ended strongly on strong inflows into local stocks even as upbeat economic data from the US diminished safe-haven appeal of dollar. Globally risk appetite improved as increasing optimism for a safe and effective COVID-19 vaccine eased concerns that another round of business lock-downs was likely," Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities said.

Rupee has now touched an important support zone of 75 a dollar, he added.

FIIs net sold Rs 1,696.45 crore worth of shares on July 1, but they have been net buyers in June (Rs 5,492.95 crore) and May (Rs 13,914.49 crore).
First Published on Jul 2, 2020 04:22 pm
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