The rupee edged higher by 10 paise to close at 73.91 (provisional) against the US dollar on Wednesday, November 25 as investor sentiment saw a good response after positive development on the coronavirus vaccine. At the interbank foreign exchange market, the domestic unit opened at 73.98 against the greenback and recorded an intraday high of 73.88. It witnessed a low of 74.02. In the opening session, the rupee appreciated six paise to touch 73.95 against the dollar. The domestic unit finally closed at 73.91 against the American currency, registering a rise of 10 paise over its previous close. On Tuesday, November 24, the rupee zoomed 10 paise to close at 74.01 against the dollar.
According to traders, risk appetite increased on news that US President-elect Joe Biden plans to nominate former Federal Reserve chairwoman Janet Yellen as treasury secretary. A weak American currency in the foreign market also supported the rupee. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was down 0.10 per cent to 92.13.
According to exchange data, the foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 4,563.18 crore on November 25.
“Markets are currently being driven a macro shift of assets into equities globally. India is likely to benefit from a weight increase at the MSCI index rebalance at month-end, due to an increase in Foreign Ownership Limits. Since Nifty is already at lifetime highs, we expect market strength to become more broad-based now, with under-owned sectors like Metals and PSUs catching up on performance and Mid-caps out-performing Large-caps in the short-term,” said S Hariharan, Head – Sales Trading, Emkay Global Financial Services.
On the domestic equity market front, the BSE Sensex settled 694.92 points or 1.56 per cent lower at 43,828.10, while the NSE Nifty slumped by196.75 points or 1.51 per cent to 12,858.40. Brent crude futures, the global oil benchmark, rose 1.32 per cent to USD 48.49 per barrel.