Re spurts on forex inflow hopes
Mumbai: The rupee rose by 18 paise to close at 73.50 against the US dollar on Wednesday on hopes of foreign fund flows after the government approved reforms in the telecom sector and an incentive scheme for automotive and drone sectors.
Gains in the domestic equity markets and weakness in the dollar in overseas markets after softer-than-expected US inflation numbers also supported the rupee sentiment. At the interbank forex market, the local unit opened flat at 73.68 against the greenback. During the session, the domestic unit witnessed an intra-day high of 73.50 and a low of 73.74.
In the previous session, the rupee had settled at 73.68 against the US dollar. "Indian rupee appreciated after two days of downward swing following weakness in dollar index, foreign fund inflows, better than expected economic data and risk-on tones," said Dilip Parmar, research analyst, HDFC Securities.
Spot USDINR is facing a stiff resistance at 73.95 and support around 73.40. The pair likely to consolidate in range of 73.40 to 73.95 before the next week's Fed policy meeting, Parmar said.