It was helped by a recovery in regional currencies and a fall in crude oil prices
It was helped by a recovery in regional currencies and a fall in crude oil prices
After its two-day losing streak, the rupee rose 12 paise to close at 77.32 (prelim) against the US dollar on Tuesday, helped by a recovery in regional currencies and a fall in crude oil prices.
However, weak domestic stocks and continued foreign capital outflows limited gains, forex traders said.
In the interbank FX market, the rupee opened strong at 77.27 against the greenback and has ranged from 77.20 to 77.45 in intraday trading. The rupee finally closed at 77.32, 12 paise higher than its previous close.
In the previous session, the rupee fell 54 paise to close at a record low of 77.44 against the US dollar.
“The rupee has regained some lost ground after hitting a lifetime low of 77.53 on Monday. The rebound in risky assets and stronger regional currencies supported the rupee in today’s session.
“Some stabilization in risk sentiment after a few days of sell-off could help the local currency, while recovery in crude oil prices and fund outflows could weigh on the rupee,” said Dilip Parmar, research analyst at HDFC Securities.
The backdrop of Fed tightening, growth concerns and an unstable risk environment bode well for the greenback. However, short-term gain bookings in the dollar index should not be ruled out as it faces strong resistance around 104, he added.
On the domestic stock market front, the BSE Sensex closed 105.82 points or 0.19% lower at 54,364.85, while the broader NSE Nifty fell 61.80 points or 0.38% to 16,240.05.
Brent crude futures, the global oil benchmark, fell 1.15 percent to $104.72 a barrel.
The dollar index, which measures the dollar’s strength against a basket of six currencies, rose 0.03 percent to 103.68.
Overseas institutional investors remained net sellers in the capital market on Monday, selling shares valued at Rs 3,361.80 crore, according to stock market data.
