The Indian rupee is seen extending its positive streak against the dollar on Thursday, November 26, 2020 as positive development on the coronavirus vaccine front cheered investor sentiment. Risk appetite improved on news that US President-elect Joe Biden plans to nominate former Federal Reserve chairwoman Janet Yellen as treasury secretary. Moreover, a weak American currency in the overseas market also supported the rupee.

On Wednesday, the rupee appreciated by 10 paise to close at nearly a month high of 73.91 against the US dollar on Wednesday. At the interbank forex market, the domestic unit opened at 73.98 against the greenback and witnessed an intra-day high of 73.88 and a low of 74.02. The local unit finally closed at 73.91 against the American currency, registering a rise of 10 paise over its previous close. On Tuesday, the rupee had climbed 10 paise to close at 74.01 against the US dollar. The domestic unit had closed at 73.87 against the greenback on October 28.

Domestic benchmark indices corrected sharply and ended with heavy losses on Wednesday. The barometer index, the S&P BSE Sensex, tumbled 694.92 points or 1.56% at 43,828.10. The Nifty 50 index fell 196.75 points or 1.51% at 12,858.40. Foreign portfolio investors (FPIs) bought shares worth Rs 24.20 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,840.33 crore in the Indian equity market on 25 November, provisional data showed.

Overseas, Asian stocks are trading mixed on Thursday as investors reacted to minutes released overnight from the U.S. Federal Reserve's November meeting. The Bank of Korea on Thursday held steady on its key policy rate at a record low of 0.5%. In US, the Dow Jones Industrial Average and the S&P 500 index closed lower on Wednesday as mounting U.S. layoffs in the wake of new mandated lockdowns to contain surging COVID-19 infections dampened investor risk appetite. The Nasdaq Composite outperformed. U.S. financial markets will be closed on Thursday for the Thanksgiving holiday and U.S. bonds and stocks will trade on a partial schedule on Friday.

Meanwhile, the dollar was down on Thursday morning in Asia, subdued by weak U.S. economic data but with lingering optimism over the development of a COVID-19 vaccine leading investors to riskier assets tied to global commodities and emerging markets. The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.09% to 91.918, its lowest level in more than two months. It was also close to its weakest in more than two months against the euro.