The rupee is up 8 paise to 76.16 against the US dollar as crude falls


The rupee appreciated 8 paises against the US dollar to 76.16 on March 28, helped by positive domestic equities and a fall in global crude prices.

But a strengthening of the US currency abroad and concerns about renewed foreign capital outflows limited gains in the domestic unit, forex traders said.

On the interbank FX market, the local unit opened weak at 76.36 but entered positive territory later in the session. It posted a daily high of 76.15 and a low of 76.38.

The rupee was trading at 76.16 as of 3:30 p.m., up 8 paise from its previous close. In the previous session, the rupee settled at 76.24 against the US dollar.

“The rupee has fluctuated between 76 and 76.50 for the past six trading sessions. Even after a stronger dollar index, the rupee manages to add gains on the back of lower crude oil prices, higher stocks and corporate dollar sales.

“The fate of the rupee will be decided by crude oil price action and risk appetite. Spot USD/INR is expected to trade in the 76-76.50 range this month,” said Dilip Parmar, research analyst at HDFC Securities.

Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, rose 0.32% to 99.13.

Brent crude futures, the global oil benchmark, fell sharply, down 3.56% to $116.35 a barrel.

On the domestic stock market front, the BSE Sensex closed 231.29 points, or 0.40%, higher at 57,593.49, while the broader NSE Nifty advanced 69 points, or 0.40%, to 17,222.

Foreign institutional investors remained net sellers in the capital market on Friday as they sold £1,507.37 billion worth of shares, according to stock market data.

Foreign investors have withdrawn £1,14,855.97 billion net from Indian markets year to date amid heightened geopolitical tensions and inflation concerns.

Foreign portfolio investors have sold ₹48,261.65 billion worth of domestic shares so far this month, bringing the annual balance this year to a massive ₹1,14,855.97 billion, according to custody data.

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