Rupee gains against the dollar for the third consecutive session

The rupee gained against the dollar for the third consecutive session and after it hit a lifetime low on Monday as international crude oil prices came off from the highs after Opec member UAE supported a hike in output bringing a relief from the supply disruptions due to the Russia-Ukraine conflict.

The Indian currency appreciated 0.34 per cent against the dollar on Thursday as it closed at 76.31/$ as compared to the previous close of 76.56/$.

“The Indian rupee opened at 76.27, about 29 paise stronger than yesterday’s close of 76.56 against the Dollar as positive talks between Russia and Ukraine as a part of which Ukraine also said it is not insisting on NATO membership has buoyed sentiments that resulted in increased risk appetite in global markets while energy and commodity prices eased from recent peaks,” Mecklai Financial said.

The dollar index has also corrected by more than a percent from its recent peak of 99.42 to the current level of 98.12.

“USDINR spot closed 25 paise lower at 76.30 on the back of long liquidation as sentiments improved due to fall in oil prices and strong show by BJP in state elections,” said Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities.

The rupee gained almost 0.9% since it touched an all time low of 76.97/$ on Monday. Dealers said the state-run banks sold dollars on behalf of the central bank in a bid to protect the currency from touching 77/$ levels.

“The Rupee continued its appreciating move as pessimistic sentiment was seen taking a toll after some glimpse of hope observed ahead of Russia-Ukraine talk,”said Amit Pabari, managing director, CR Forex.

“It seems RBI had intervened around the 77 mark over a couple of days as NDF was seen jumping above 77, but the opening used to be below that. So, its clear signal RBI had jumped to rescue. Overall, above average crude oil prices, widening trade deficit, relentless sell-off by FIIs and a stronger dollar could not allow the Rupee to appreciate beyond 76 easily. It could start losing the ground and retest an all-time low of 77 and further upto 77.50 levels,” Pabari said.