Rupee Depreciates To 73.09 Against Dollar Amid Muted Domestic Equities

Rupee Vs Dollar Rate: At the interbank foreign exchange market, the domestic unit opened on a negative note at 73.13, against the previous close of 72.90,against the dollar

Rupee extended losses for the third straight session, depreciating 19 paise against the US dollar on Wednesday, June 2, to settle at 73.09 tracking muted domestic equities and stronger American currency.  At the interbank foreign exchange market, the domestic unit opened on a negative note at 73.13, against the previous close of 72.90, against the dollar, and swung between 73.04 to 73.30 throughout the session. In an early trade session, the local unit declined 26 paise to 73.16 against the greenback.The domestic unit has lost 64 paise in the three trading sessions to Wednesday. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, gained 0.35 per cent to 90.14. “Retail long positioning in the market has continued to increase over the last fortnight to a lifetime high, while rich futures basis also points to elevated degree of leverage. On the other hand, the recent rally has been broad-based with Mid-cap & Small-cap indices making fresh highs ahead of Nifty,'' said Mr. S Hariharan, Head - Sales Trading, Emkay Global Financial Services ''Given India's outperformance over EMs & Asia over the last month, foreign flows can be expected to stay somewhat muted for the month ahead. At a sectoral level, Financials & IT have been displaying relative strength while momentum in Autos & Metals sectors has been waning,'' he added.Market participants remained vigilant ahead of the Reserve Bank of India monetary policy meeting scheduled to be announced on Friday, June 4. On the domestic equity market front, the BSE Sensex ended 85.40 points, or 0.16 per cent lower at 51,849.48, while the broader NSE Nifty climbed 1.35 points or 0.01 per cent to close at 15,576.20.   ''Markets ended at almost unchanged levels in a lacklustre trade, but it seems that a corrective pattern has been completed. The 15460 level would act as significant support for Nifty and Sensex if it breaks the level it could fall to 15430/15330. The index would have closed below 15500 today if not for gains in banks and auto Sectors. Index giant Reliance was also the top performer and could close above Rs 2200 after 60 days,'' said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.