The rupee bounces back from record lows to end 7 paise higher at 77.47 against the dollar

The rupee rebounded from its all-time intraday low of 77.79 on May 17 to close 7 paise higher on a spectacular rally in domestic equity markets.

After opening lower at 77.67, the local unit tumbled further to its all-time daily low of 77.79 on a rise in crude oil prices and disappointing macro data.

However, a strong rebound in domestic equities helped the rupee rebound to close at 77.48 (prelim) for net gains of 7 paise from the last close of 77.55. The forex market was closed on Buddha Purnima’s account on Monday.

The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.41% to 103.75.

Brent crude futures, the global oil benchmark, rose 0.74% to $115.09 a barrel.

“The Indian rupee depreciated on Tuesday on a rise in crude oil prices and disappointing macroeconomic data. However, the soft tone of the US dollar and risk appetite in global markets have cushioned the downside,” said Praveen Singh, AVP – Fundamental Currencys and Commodities Analyst, BNP Paribas Sharekhan.

Wholesale price-based inflation rose to a record high of 15.08% in April, mainly due to rising prices for food, fuel and other commodities, which could prompt the Reserve Bank to raise interest rates at next month’s forthcoming monetary policy review.

The dollar fell on positive undertones in risky assets and weak economic data.

“However, overall shaky risk sentiment and concerns about the global economic recovery could limit any strong upside. Tensions over the Ukraine war could also weigh on the rupee,” Mr Singh said, adding that the rupee could trade in the 76.80-78.30 range in the next few sessions.

The Commerce Ministry on Friday said India’s goods exports rose 30.7% to $40.19 billion in April on the healthy performance of sectors including petroleum products, electronic goods and chemicals, although the trade deficit narrowed to 20% during the month. expanded to $11 billion.

On the domestic stock market front, the BSE Sensex closed up 1,344.63 points, or 2.54%, to 54,318.47, while the broader NSE Nifty was up 417.00 points, or 2.63%, to 16,259.30.

Foreign institutional investors remained net sellers in the capital market on Monday, selling ₹1,788.93 crore of shares, according to stock market data.

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