Rupee 26 paise higher at 73.12 against USD, gold declines by Rs 49

Mumbai, Mar 31 (PTI): The rupee closed higher by 26 paise at 73.12 (provisional) against the US dollar on Wednesday and ended the fiscal on a strong note with a gain of over 3 per cent despite coronavirus-induced disruptions on the economic front.
At the interbank forex market, the local unit opened at 73.56 against the greenback and witnessed an intra-day high of 73.05 and a low of 73.58.
It finally ended at 73.12 against the American currency, registering a rise of 26 paise over its previous closing. On Tuesday, the rupee had settled at 73.38 against the American currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.10 per cent to 93.20. Forex traders said market participants remained cautious as the Indian currency markets will remain shut for the next two sessions. The Indian currency markets will be closed on Thursday and Friday for annual bank closing and Good Friday holiday respectively. “Despite a truncated week, the forex market has been very volatile. The spot breached 73 on the back of uptrend in dollar. The market focus is on Biden’s additional stimulus announcement and an additional spending boost will further support the dollar rally,” said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.
Gupta further noted that “the best thing to do for now is to follow the trend and let the market tell you where it’s going to end. In USDINR spot we expect the trading range to be 72.50-73.50.”
Gold prices declined by Rs 49 to Rs 43,925 per 10 gram in the national capital on Wednesday reflecting overnight selling in global precious metal prices, according to HDFC Securities. The precious metal had closed at Rs 43,974 per 10 gram in the previous trade.
Silver also registered a fall of Rs 331 to Rs 62,441 per kg from Rs 62,772 per kg in the previous trade.
“Spot gold prices for 24 carat in Delhi were down by Rs 49 reflecting overnight selling in COMEX (New York-based commodities exchange) prices while weaker rupee capped the downside,” according to HDFC Securities, Senior Analyst (Commodities), Tapan Patel.
The Indian rupee slumped 20 paise to 73.58 against the US dollar in opening trade on Wednesday. In the international market, gold was trading lower at USD 1,684 per ounce and silver was flat at USD 24.09 per ounce. “Gold prices declined with stronger dollar over US economic recovery optimism,” he added.