Rupee spurts by 42 paise to 76.20 against US dollar on stocks rally

The rupee spurted by 42 paise to a nearly two-week high of 76.20 against the US dollar on Wednesday, tracking positive domestic equities and Asian currencies ahead of the US Federal rate hike decision.

At the interbank forex market, the local unit opened at 76.40 against the greenback and witnessed an intra-day high of 76.19 and a low of 76.44.

The rupee quoted at 76.20, registering a rise of 42 paise over its previous close of 76.62.

"Rupee appreciated against US dollar taking cues from stronger Asian currencies and risk-on moods. Forex markets are little tepid ahead of Wednesday's Fed decision while US 10-year bond yields retraced after touching 2.20 percent, the highest level since 2019," said Dilip Parmar, Research Analyst, HDFC Securities.

The US Federal Reserve likely to raise rates by 25bps, as well as penciling further such hikes this year amid higher inflation.

Spot USDINR could find support in the range of 76 to 75.70, while resistance is around 76.70, Parmar added.

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, fell 0.38 percent to 98.72.

Brent crude futures, the global oil benchmark, advanced 1.14 percent to USD 101.05 per barrel.

On the domestic equity market front, the BSE Sensex ended 1,039.80 points or 1.86 percent higher at 56,816.65, while the broader NSE Nifty surged 312.35 points or 1.87 percent to 16,975.35.

Foreign institutional investors were net sellers in the capital market on Tuesday, as they offloaded shares worth Rs 1,249.74 crore, as per stock exchange data.