The rupee is up 20 paise in early trade

The Russia-Ukraine conflict has sapped risk appetite in the market, pushing investors toward safe havens, traders say.

The Russia-Ukraine conflict has sapped risk appetite in the market, pushing investors toward safe havens, traders say.

The rupee rose 20 paise to 76.73 against the US dollar in opening trade on Tuesday 8th March 2022 amid a slight decline in crude oil prices and a weak dollar.

Forex traders said the rupee’s appreciation will be limited as the deepening Russia-Ukraine conflict has sapped risk appetite in the market and pushes investors towards safer assets.

On the interbank forex exchange, the rupee opened weak at 77.02 against the US dollar, then erased its initial losses to hit 76.73, posting a gain of 20 paise from the previous close.

Rising crude oil prices

On Monday, the rupee slipped for a fourth straight session, falling 76 paises to close at 76.93 after touching a lifetime low of 77 against the US dollar, as crude prices surged amid the Russia-Ukraine crisis reached a multi-year high.

The Indian rupee opened higher against the US dollar amid a slight decline in crude oil prices and a weak dollar, said Sriram Iyer, senior research analyst at Reliance Securities.

RBI’s $5 billion dollar-rupee sell-buy swap on Tuesday will help traders gauge the central bank’s stance on the rupee and futures, Iyer said, adding that markets could remain volatile.

Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, fell 0.16 percent to 99.13.

Meanwhile, futures for global oil benchmark Brent crude rose 1.79 percent to $125.41 a barrel.

On the domestic stockmarket front, the 30-stock Sensex traded 117.7 points, or 0.22 percent, higher to 52,960.45, while the broader NSE Nifty was up 19.20 points, or 0.12 percent, to 5,882.35.

Foreign institutional investors remained net sellers in the capital market on Monday, selling ₹7,482.08 crore of shares, according to stock market data.

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