Rupee gains 6 paise to close at 73.12 against $

Mumbai rupee strengthened by 6 paise to end at 73.12 against the US dollar on Thursday, tracking the weakness in the American currency in the overseas market. At the interbank forex market, the local unit opened at 73.16 against the greenback and witnessed an intra-day high of 73.09 and a low of 73.17. It finally ended at 73.12 against the American currency, registering a rise of 6 paise over its previous closing.

On Wednesday, the rupee had settled at 73.18 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.09 per cent to 90.10.

"The Indian rupee appreciated marginally against the greenback supported by dollar inflows and weaker dollar. However, gains were capped on importer hedging and the Federal Reserve's bond taper worries weighed on risk appetite," said Sriram Iyer, Senior Research Analyst at Reliance Securities.

Meanwhile, most Asian currencies and equities ended weaker and weighed on sentiments. Technically, the USDINR spot pair could remain in the range 72.90-73.25, Iyer said. According to Kaynat Chainwala - Fundamental Research Analyst Currencies, Anand Rathi Shares and Stock Brokers, the path to India's economic recovery may not be smooth in the near term considering the challenges posed by resurgence of Covid-19 pandemic in India. "So, the RBI is likely to continue with its accommodative monetary policy stance in the June meeting to provide much needed support to the economy," Chainwala said.