Mumbai:
The rupee gave up day’s gains to settle on a flat note at 74.75 against the US dollar on Thursday amid concerns over growing tensions between the US and China.
At the interbank forex market, the domestic unit opened on a strong note at 74.65, but erased the gains to finally close at 74.75, unchanged from its previous closing.
During the session, the domestic unit witnessed an intra-day high of 74.52 and a low of 74.87 against the US dollar.
Forex traders said the uptick in the rupee during the day was supported by weak greenback, foreign fund inflows and positive domestic equities, but rising tensions between the US and China weighed on investor sentiment and restricted the gains.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.01 per cent to 94.99.
Brent crude futures, the global oil benchmark, fell 0.54 per cent to USD 44.05 per barrel.
Tensions between the US and China have escalated after Washington ordered closure of Beijing’s consulate in Houston.
US President Donald Trump has said that closure of more Chinese embassies was possible .
“Rupee traded in a narrow range for the second successive session despite gains in domestic and global equities. Fund inflows in the equity segment continued to keep the rupee higher but concerns over tension between India and China kept the volatility high for the currency,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
On the domestic equity market front, the BSE benchmark Sensex ended 268.95 points or 0.71 per cent higher at 38,140.47 and the NSE Nifty settled 82.85 points or 0.74 per cent up at 11,215.45.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,740.50 crore on Thursday, according to provisional exchange data.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 74.6848 and for rupee/euro at 86.0638. The reference rate for rupee/British pound was fixed at 94.9657 and for rupee/100 Japanese yen at 69.90.
Meanwhile, the number of cases around the world linked to COVID-19 has crossed 1.52 crore and the death toll has topped 6.23 lakh.
In India, the death toll due the disease rose to 29,861 and the number of infections has crossed the 12-lakh mark, according to the health ministry.
