Rupee rises by 8 paise to close to 76.16 against US dollar as oil declines

The rupee on Monday appreciated 8 paise to close at 76.16 against the US dollar following a fall in crude oil prices and gains in the domestic equities.

A strengthening American currency overseas and concerns over renewed foreign capital outflows capped the gains in the domestic unit, forex traders said.

At the interbank forex market, the local unit opened weak at 76.36 but entered positive territory later in the session. It witnessed an intra-day high of 76.15 and a low of 76.38.

The rupee closed at 76.16, registering a rise of 8 paise over its previous close. In the previous session, the rupee had settled at 76.24 against the US dollar.

"Rupee has been oscillating between 76 and 76.50 for the last six trading sessions. Even after a stronger dollar index, the rupee manages to add gains amid lower crude oil prices, higher equities and corporates dollar selling.

"The fate of the rupee will be decided by the price action of crude oil and risk sentiments. Spot USD/INR is expected to trade in the range of 76 to 76.50 this month," Dilip Parmar, Research Analyst, HDFC Securities, said.

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, rose 0.32 per cent to 99.13.

Brent crude futures, the global oil benchmark, fell sharply by 3.56 per cent to USD 116.35 per barrel.

On the domestic equity market front, the BSE Sensex ended 231.29 points or 0.40 per cent higher at 57,593.49, while the broader NSE Nifty advanced 69 points or 0.40 per cent to 17,222.

Foreign institutional investors remained net sellers in the capital market on Monday as they sold shares worth Rs 801 crore, according to stock exchange data.

Overseas investors have pulled out a net Rs 1,14,855.97 crore from the Indian markets in the current year so far, amid heightened geopolitical tensions and inflation concerns.

Foreign portfolio investors have sold domestic equities worth Rs 48,261.65 crore so far this month, taking the year-to-date tally this year to a massive Rs 1,14,855.97 crore, according to depositories data.