Rupee extends gains for 5th day, rises by 11 paise as dollar, crude weaken

Rising for the fifth straight day, the rupee extended gains by 11 paise to close at 74.55 (provisional) against the US dollar on Monday on the back of a weak dollar and softer crude oil prices amid hopes of a diplomatic solution to the Russia-Ukraine crisis.

The local unit opened strong at 74.51 to a dollar and later spurted to the day's high of 74.35 as crude oil traded below USD 95 per barrel.

The rupee later gave up some of the gains due to losses in the domestic equity markets and forex outflows, before finally finishing at 74.55.

The local currency had closed at 74.66 against the greenback on Friday.

"Rupee traded strong near 74.55 as dollar index weakness keep strength in rupee. Crude prices took a halt and trading below USD 95 has cheered the rupee market," said Jateen Trivedi, Senior Research Analyst at LKP Securities.

Meanwhile, the dollar index eased by 0.26 per cent to 95.79 after reports of a likely summit between US President Joe Biden and Russian President Vladimir Putin to discuss the Ukrainian border crisis.

Brent crude also traded down at USD 93.51 per barrel on hopes of a diplomatic solution to the Russia-Ukraine stalemate.

Domestic equities logged their fourth straight session of losses, with the BSE Sensex ending 149.38 points or 0.26 per cent lower at 57,683.59. The broader NSE Nifty declined 69.65 points or 0.40 per cent to 17,206.65.

Foreign investors remained net sellers in Indian capital markets as they sold equities worth Rs 2,529.96 crore on Friday.