Rupee surges 15 paise to 74.59 against U.S. dollar in early trade

It had settled at 74.74 against the U.S. dollar on July 21.

The rupee appreciated 15 paise to 74.59 against the U.S. dollar in opening trade on July 22 tracking positive Asian currencies and improvement in investors’ risk appetite.

At the interbank forex market, the domestic unit opened at 74.61 against U.S. dollar, gained further ground and touched 74.59 against the U.S. dollar, registering a gain of 15 paise over its previous close.

It had settled at 74.74 against the U.S. dollar on July 21.

“Asian currencies were stronger against the U.S. dollar this morning and could lift sentiments for the local unit,” Reliance Securities said in a research note, adding that “the currency could also be supported by more stimulus measures to mitigate the economic blow from the pandemic”.

Moreover, hopes of COVID-19 vaccine also improved sentiments. Several scientists in India and abroad said that the coronavirus vaccine developed by Oxford University and AstraZeneca shows promise as it can generate both antibodies and cell-mediated immune responses.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.02% to 95.13.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 62.63 points lower at 37,867.70 and broader NSE Nifty fell 14.90 points to 11,147.35.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth ₹2,265.88 crore on July 21, according to provisional exchange data.

Brent crude futures, the global oil benchmark, slipped 0.50% to $44.10 per barrel.

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