The Indian rupee has up by 17 paise near a one-month high of 72.95 against the US dollar tracking positive domestic equities. In the Overseas market weakness of American currency helped Indian currency. The rupee opened at 72.98 against the dollar as compared to the previous close of 73.12 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.06 per cent to 89.75. On the domestic equity market front, BSE Sensex was trading over 500 points higher amid a rally in global equity markets.

“Domestically, rupee traded on a stable note majorly on account of IPO and corporate inflows. With India’s daily count of covid cases staying below the 3 lakh mark for fifth day in a row have also supported market sentiment. It will be watchful whether RBI shows any intervention downside to cap sharp gains in rupee. As the overall sentiments remain cautious, momentum in the rupee could also be trapped within its present narrow-range of 72.90-73.50 levels,” said CR Forex Advisors. “Thus any dips between 72.90-73.10 levels can be taken for buying and upticks above 73.20-73.40 shall be utilized to sell for near term exposures.”

The daily rise in coronavirus cases in India remained below 3 lakh for the fifth consecutive day with 2.59 lakh new cases recorded in a single day, according to the latest Union Health Ministry data. With a total of 2,59,551 fresh cases, India’s total tally of COVID-19 cases climbed to 2,60,31,991. The death toll climbed to 2,91,331 with 4,209 daily deaths.

“FPI equity outflows totaled more than USD 2.7 billion in April and May (till date). A large rally in global stocks and a comparatively weak Dollar against the major currencies have affected lifted the rupee,” said Kshitij Purohit, Lead International Products & Commodities at CapitalVia Global Research Limited.