Rupee back to winning ways, ends 28 paise higher against dollar

The Indian rupee on Friday staged a smart rebound to close 28 paise higher at 73.61 against the US dollar, tracking gains in Asian peers and local equities.

At the interbank forex market, the domestic unit opened at 73.76 against the US dollar and touched an intra-day high of 73.56 and a low of 73.77 against the US dollar.

It finally closed at 73.61 a dollar, a rise of 28 paise over its previous close.

On weekly basis, the domestic currency lost 16 paise to the US dollar.

According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the Indian rupee appreciated on Friday tracking gains in the Asian currencies and equities amid risk-on sentiments and marginally weaker US dollar.

For the week, the currency was weak against the US currency tracking its regional counterparts as risk aversion triggered by rising concerns about a quick global economic recovery due to re-emergence of Covid-19 infections, Iyer said.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.01 per cent up at 94.36.

Brent crude futures, the global oil benchmark, rose 0.31 per cent to USD 42.07 per barrel.

On the domestic equity market front, the BSE benchmark Sensex zoomed 835.06 points or 2.28 per cent; while the NSE Nifty rose 244.70 points or 2.26 per cent.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 2,080.21 crore on Friday, exchange data said.

Going ahead, on the domestic front, focus will be on fiscal deficit number that will be released next week and widening deficit could keep the rupee weighed down, said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.