Developments in the Russia-Ukraine conflict and developments in crude oil prices remain the main focus for forex markets, forex traders said.
Developments in the Russia-Ukraine conflict and developments in crude oil prices remain the main focus for forex markets, forex traders said.
The rupee fell 21 paises to 75.94 against the US dollar on Wednesday, as rising crude prices and hikes in fuel prices by oil marketing firms stoked fears of inflation and interest rate hikes.
However, a sharp rebound in domestic stocks limited the rupee’s decline, forex traders said.
The development of the Russia-Ukraine conflict and developments in crude oil prices remain the main focus for currency markets, they added.
In the interbank FX market, the rupee opened strong at 75.65 against the US dollar but soon turned negative as investors dumped riskier assets. During the session, it oscillated between a high of 75.62 and a low of 75.97.
The local unit ended up trading at 75.94 against the dollar, down 21 paise from the previous close.
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, slipped 0.42 percent to 98.02.
Global oil benchmark Brent crude futures rose 1.88% to $112.30 a barrel.
At home, oil distributors hiked petrol and diesel prices by 80 paise a liter each on Wednesday, bringing the total price hike to £5.60 a liter over the past nine days. This is the ninth rate hike since the end of a four and a half month pause in rate revisions on March 22nd.
Foreign institutional investors were net buyers in the capital market on Tuesday, buying £35.47 billion worth of shares, according to stock market data.
