Rupee Opens Higher At 72.81; Yields Continue To Fall

Rupee in trade today on May 24, 2021 opened higher at 72.81 on buoyancy in equity markets and stability in the dollar index.

On Friday rupee ended higher below 73 at 72.838 per US dollar. While the yield on 10-year benchmark bonds closed at 5.977 percent. The gain was to the tune of 29 paise in the rupee, which hit a 8-week high.

In the bond market, bond yields have been falling owing to government's G-securities purchase programme as well as a fall in US treasury yields.

In the international markets, US dollar has maintained steady at 90.05 at 10:50 pm EDT.

It shall be of interest to see if the RBI intervenes to cap any major upside in the currency. As the overall sentiments remain cautious, momentum in the rupee could also be trapped within its present narrow-range of 72.90-73.50 levels," said CR Forex Advisors.

Of late the factors that triggered gains for the Indian currency include gains in global stocks as well as downside in the dollar index.

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