The rupee strengthened by 57 paise to close at 81.78 (provisional) against the US dollar on Tuesday, its biggest single-day gain since November.
Forex traders said the rupee was the best performer among Asian currencies and now took support of 81.70.
At the interbank forex market, the local unit opened at 82.20 and touched an intra-day high of 81.72 and a low of 82.26 against the greenback.
It finally closed at 81.78 (provisional), registering an increase of 57 paise over its previous closing price. On Monday, the rupee had closed at 82.35 against the US dollar. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.12 percent to 103.12.
Dilip Parmar, Research Analyst, HDFC Securities, said rupee became the best performer among Asian currencies following stop order triggers and inflows from bond selling.
“The local unit saw biggest one-day gains after Nov 11 and breached the psychological level of 82 as traders rushed to cover positions,” said Parmar.
Parmar further noted that spot USD/INR now has support near 81.70, adding “50 percent Fibonacci retracement from Nov 14 low of 80.51 and Jan 03 high of 82.94. Near-term outlook for the pair and a level The view remains bearish. A break below 81.70 will pave way for 81.45 while on the higher side 82.10 acts as resistance.
On the domestic equity market front, the 30-share BSE Sensex declined 631.83 points, or 1.04 per cent, to end at 60,115.48, while the broader NSE Nifty declined 187.05 points, or 1.03 per cent, to 17,914.15.
Global oil benchmark Brent crude futures rose 0.13 per cent to $79.75 a barrel. Foreign institutional investors (FIIs) were net sellers in the capital market on Monday, selling shares worth Rs 203.13 crore, according to exchange data.
(with PTI inputs)
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