Rupee zooms 58 paise at 74.35 against USD, gold rises Rs 9

Mumbai, Apr 16 (PTI): The rupee strengthened by 58 paise to end at 74.35 (provisional) against the US dollar on Friday, supported by positive domestic equities amid improving risk appetite. At the interbank forex market, the local unit opened at 74.76 against the greenback and witnessed an intra-day high of 74.28 and a low of 74.76. It finally ended at 74.35 against the American currency, registering a rise of 58 paise over its previous closing. On Thursday, the rupee had settled at 74.93 against the American currency.
“Indian Rupee gained strength amid weakness in dollar and rise in risk appetite in the domestic markets,” said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.
Mukadam further noted that dollar dipped on extended decline in US treasury yields. “US treasury yields fell as US Federal Reserve policy-makers signaled that central bank is not in hurry to reduce its support,” he said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.09 per cent to 91.59.
According to Mukadam, further gains for the local unit were prevented on surge in crude oil prices and on concern that rising COVID-19 cases in India and lockdown restriction in some states may hurt economic recovery.
Gold prices rose marginally by Rs 9 to Rs 46,431 per 10 gram in the national capital on Friday, according to HDFC Securities.
In the previous trade, the precious metal had closed at Rs 46,422 per 10 gram.
Silver also gained Rs 53 to Rs 67,460 per kg from Rs 67,407 per kg in the previous trade.
In the international market, gold was quoting higher at USD 1,764 per ounce and silver was flat at USD 25.87 per ounce.
“Gold prices rallied supported by dollar decline and fall in US bond yields,” according to HDFC Securities, Senior Analyst (Commodities), Tapan Patel.
Navneet Damani, VP Commodities Research, Motilal Oswal Financial Services, “Gold traded higher to a more than one-month peak as US Treasury yields slipped despite better-than-expected US economic data, pushing investors to bullion as a refuge against possible inflation ahead.”

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