Rupee rises 17 paise at 73.05 against USD, gold gains Rs 333

Mumbai, May 18 (PTI): The rupee strengthened for the third straight session on Tuesday and closed 17 paise higher at 73.05 (provisional) against the US dollar tracking positive domestic equities and weakening of the American currency in the overseas market.
At the interbank forex market, the rupee opened at 73.18 and hit an intra-day high of 72.95 and a low of 73.18 during the session.
The local unit finally settled at 73.05, registering a gain of 17 paise over its previous close. On Monday, the rupee had closed at 73.22 against the US dollar.
The domestic unit has appreciated 37 paise in the last three trading sessions.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.40 per cent to 89.80.
Gold in the national capital on Tuesday rose by Rs 333 to Rs 47,833 per 10 gram in line with a rally in the global precious metal, according to HDFC Securities.
In the previous trade, the precious metal had closed at Rs 47,500 per 10 gram.
Silver also witnessed increased demand as it jumped Rs 2,021 to Rs 73,122 per kilogram from Rs 71,101 per kilogram in the previous trade.
In the international market, gold was trading in the green at USD 1,869 per ounce, while silver was trading flat at USD 28.48 per ounce.
“Gold prices were supported by weaker dollar,” according to HDFC Securities, Senior Analyst (Commodities), Tapan Patel.
Navneet Damani, VP Commodities Research, Motilal Oswal Financial Services said,
“Gold continued to inch higher breaching the 1,850 level, rising to their highest in more than three months as a weaker US dollar and growing inflationary pressure lifted bullion’s appeal.”