Rupee soars 47 paise to 74.29 against the US dollar in early trade

The rupee appreciated 47 paise to 74.29 against the US dollar in opening trade, as investor sentiments strengthened amid expectation of Joe Biden's victory in the US Presidential elections

The rupee appreciated 47 paise to 74.29 against the US dollar in opening trade on Thursday, as investor sentiments strengthened amid expectation of Joe Biden's victory in the US Presidential elections.

Traders said positive domestic equities and weak American currency also supported the local unit.

At the interbank forex market, the domestic unit opened at 74.35 against the US dollar, then gained further ground and touched 74.29, registering a rise of 47 paise over its previous close.

On Wednesday, the rupee had plunged by 35 paise to close at its weakest level in over 10 weeks at 74.76 against the US dollar.

"Risk assets have rallied overnight as things have turned around for Biden. He is now seen as winning Michigan and Wisconsin and is just 6 votes short of 270," said Abhishek Goenka, Founder and CEO, IFA Global.

Goenka further noted that "the deficit between Trump and Biden is widening and it does not seem like a Trump challenge would do much to alter what looks like an almost certain Biden win".

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07 per cent down at 93.34.

On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 562.62 points higher at 41,178.76 and broader NSE Nifty surged 167.75 points to 12,076.25.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 146.22 crore on Wednesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, fell 1.65 per cent to USD 40.55 per barrel.