Indian rupee slips below $73

20 May, 2021 12:00 AM printer

NEW DELHI: The rupee slipped below 73 in intraday trade on Tuesday but scaled back to close at 73.05 a dollar following cues from the stock market, which rose strongly for the second day.

The rupee had closed at 73.22 a dollar on Monday and dipped to 72.96 in the intraday trade. Currency dealers say the Reserve Bank of India (RBI) was not seen intervening in the market through a clutch of nationalised banks, report agencies.

The rupee’s strength was in line with other Asian currencies, which gained as the dollar weakened overnight on the expectation of a prolonged low-rate environment.

Korean won and Taiwanese dollar were the highest gains in Asia. The dollar index, which measures the greenback’s strength against other major currencies, fell 0.41 per cent to 89.79.

According to Sriram Iyer, senior research analyst at Reliance Securities, the absence of RBI in the spot market led to the rupee strength. “Technically, the USDINR Spot pair holds resistances at 73.20 and 73.35. Supports are at 72.90 and 72.70,” Iyer said.