The rupee continued its winning momentum on Tuesday, rising 25 paise to settle at 75.28 (tent) against the US dollar as the US currency and crude oil prices retreated from recent high levels.
Forex traders said the US dollar’s weakness against its main rivals boosted investor sentiment even as domestic stocks settled on a negative note.
In the interbank FX market, the domestic unit opened at 75.54 against the US dollar and hit an intraday high of 75.28 and finally closed at 75.28, posting a 25 paise rise from its previous close.
On Monday, the rupee started the 2022-23 financial year on a bullish note, shooting up 21 paise to close at a monthly high of 75.53.
Meanwhile, the dollar index, which gauges the dollar’s strength against a basket of six currencies, traded 0.09% lower to 98.90.
“Continued risk appetite, a weak dollar index and stronger regional (Asian) currencies have supported the local entity heading north,” said Dilip Parmar, research analyst at HDFC Securities.
“On the global front, investors are assessing the measures taken against Russia and the prospects for China’s economic growth as Shanghai remains in lockdown. The near-term focus will remain on RBI’s monetary policy decision and stance,” added Mr. Parmar.
In the domestic stock market, the 30-stock BSE Sensex finished 435.24 points or 0.72% lower at 60,176.50 and the broader NSE Nifty fell 96.00 points or 0.53% to 17,957.40.
Brent crude futures, the global oil benchmark, rose 1.04% to $108.65 a barrel.
Foreign institutional investors remained net buyers in the capital market on Monday as they bought £1,152.21 billion worth of shares, according to stock market data.
