Business Standard

Rupee rebounds 27 paise to 75.33 against US dollar

The rupee appreciated by 27 paise to close at 75.33 against the US dollar on Friday in line with regional currencies, following a retreat in crude oil prices and a rebound in domestic equities.

Photo: Brent Lewin/Bloomberg

Photo: Brent Lewin/Bloomberg

Press Trust of India Mumbai
The rupee appreciated by 27 paise to close at 75.33 against the US dollar on Friday in line with regional currencies, following a retreat in crude oil prices and a rebound in domestic equities.
At the interbank forex market, the local unit opened at 75.31 against the greenback and witnessed an intra-day high of 75.18 and a low of 75.46.
The rupee finally ended at 75.33, registering a gain of 27 paise over its previous close.
On Thursday, the rupee had tanked 99 paise to close at 75.60 against the US dollar, as riskier assets took a hit after Russia launched military operations against Ukraine.
Meanwhile, European Union leaders are putting up a united front and have agreed on a second package of economic and financial sanctions against Russia.
The dollar index, which measures the greenback's strength against a basket of six currencies, inched up 0.01 per cent to 97.14.
Brent crude futures, the global oil benchmark, was trading 1.07 per cent higher at USD 100.14 per barrel.
"Calmness returned to forex markets as participants assessed the fallout of Russia's invasion of Ukraine and focused shifted back to Federal Reserve. Weaker-than-expected US sanctions on Russia supported market sentiment...," said Dilip Parmar, Research Analyst, HDFC Securities.
Rupee, in line with regional currencies, gained following a retreat in crude oil prices from an eight-year high along with rebound in domestic equities.
However, the bias for spot USD-INR remains bullish as long as it holds 74.80, while on the higher side 75.75 becomes the biggest hurdle, Parmar said.
On the domestic equity market front, the BSE Sensex ended 1,328.61 points or 2.44 per cent higher at 55,858.52, while the broader NSE Nifty surged 410.45 points or 2.53 per cent to 16,658.40.
Foreign institutional investors were net sellers in the capital market on Thursday, as they offloaded shares worth Rs 6,448.24 crore, as per stock exchange data.
"On Friday, volatility remained low as market participants remained on the sidelines and waited for more clarity on the ongoing tension between Russia and Ukraine.
"From the US, focus will be on the core PCE index number and a higher number could support the dollar at lower levels. We expect the USD-INR (Spot) to trade sideways with a positive bias and quote in the range of 75.40 and 76.05," said Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services.
According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee appreciated against the US dollar tracking the strength of regional currencies and equities.
On a weekly basis, the rupee has depreciated 67 paise against the American currency, as oil prices spiked following Russia's invasion of Ukraine.
"The Rupee also took cues from weak domestic equities, which fell for the third consecutive week due to continuous selling pressure from foreign investors," Iyer noted.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Feb 25 2022 | 6:46 PM IST

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