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The Indian rupee on Thursday hit a three-month high against the US dollar amid robust gains in domestic equity market. The Indian unit closed at 75.01 a dollar, a level last seen on 27 March, up from its previous close of 75.60. It had opened at 75.50 and touched an intra-day high of 74.98 and a low of 75.53. Year to date, the currency has shed 4.84 per cent. Forex traders said positive domestic equities and a weak US dollar supported the local unit.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.26 per cent to 96.94 as developments around the covid-19 vaccine buoyed investor risk appetite.
The benchmark Sensex closed up 429.25 points or 1.21 per cent at 35843.70, and the Nifty was up 121.70 points or 1.17 per cent at 10551.70.
‘Rupee ended strongly up Thursday 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.
Foreign institutional investors net sold $2.44 billion and $14.28 billion in equity and debt markets respectively and domestic institutional investors invested Rs 90,286.25 crore in stocks, according to data on the exchanges.
Among Asian currencies, Korean won lost 0.28 per cent, Philippines Peso lost 0.16 per cent and Singapore Dollar lost 0.10 per cent. However, Indonesian Rupiah gained 0.67 per cent and Thai Baht gained 0.09 per cent.
