Rupee Drops by 7 Paise to 73.61 Against US Currency Due to Dollar Purchases by State-run Banks

“While on the inflow front, foreign institutions have bought worth USD 2 billion equities in secondary market in October month,” Vakil said. Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services said, “As we get close to the US election day, uncertainty over the outcome will keep USD-INR spot afloat. We expect 73.40 to act as an immediate support, only a break will weigh towards 73.20 zone, while, 73.90-74 will act as an immediate resistance.” On the domestic equity market front, the BSE benchmark Sensex settled 127.01 points or 0.31 per cent higher at 40,685.50 and the broader NSE Nifty rose 33.90 points or 0.28 per cent to end 11,930.35.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21 per cent lower at 92.75. Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,118.46 crore on Thursday, according to exchange data.

Brent crude futures, the global oil benchmark, rose 0.28 per cent to USD 42.34 per barrel. In the US, positive economic data supported dollar bulls – jobless claims fell and previously owned home sales rose to a 14-year high. Talks in Washington on a fresh coronavirus fiscal relief package dragged on, but House Speaker Nancy Pelosi said Democrats and the Trump administration were on the verge of an agreement, Vakil said.