Rupee Edges To Six Week High Of 73.83 Per US Dollar Buoyed By Inflows Attracted In Paytm IPO

The Indian currency rupee in trade today has gained to a six week high and last traded at 73.89 per US dollar, while its day's range has been 73.83-73.97. The appreciation in the currency has largely to do with the retreat in the dollar index which last was down by 0.16 percent to 93.90, post the dovish Fed policy stance. Meanwhile, the other factors adding to the gains in the domestic unit have been:

Rupee Edges To Six Week High Of 73.83 Buoyed By Inflows Attracted In Paytm IPO

1. Return of foreign net inflow into the economy.

2. Also, the spree of IPOs and the recent biggest IPO of Paytm has attracted inflows that has been lending a support to the currency. The move will be continuing as the primary street will continue to see IPOs and other modes of fund raising going ahead including QIP by Route Mobile.

3. Strongly recovering Indian economy amid strengthened pace of vaccination, robust manufacturing and services growth and that apart strong festive consumer demand.
Note the rupee is gaining spree despite crude which has been soaring and still gained after Saudi Arabia increased the selling price of its commodity for Asian customers.

Technically, the pair gains strong support near 73.80 levels. However, on the back of IMF's suggestion of lower interventions to India's Central bank, it will be watchful if RBI jumps in or let the rupee flow through the market. Till the pair holds above 73.80 levels, we might see a rupee in a range of 73.80-74.50 levels- views Amit Pabari, managing director, CR Forex Advisors.

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