Rupee recovers from all-time low, rises 3 paise to close at 79.30 against US dollar

The Indian rupee recovered from lower levels on positive domestic equities and sharp decline in crude oil prices.

Published: 06th July 2022 04:09 PM  |   Last Updated: 06th July 2022 04:09 PM   |  A+A-

A cashier displays the new 2000 Indian rupee banknotes inside a bank in Jammu, November 15, 2016. (Photo | Reuters)

For representational purposes (File | Reuters)

By PTI

MUMBAI: The rupee recovered from its all-time low to close 3 paise higher at 79.30 (provisional) against the US dollar on Wednesday after a sharp fall in crude oil and foreign fund inflows.

At the interbank forex market, the local unit opened at 79.29 against the greenback and witnessed an intra-day high of 79.24 and a low of 79.37.

It finally settled at 79.30, a rise of 3 paise over its previous close.

In the previous session, the rupee had closed at an all-time low of 79.33 against the US dollar.

"The Indian rupee recovered on Wednesday from lower levels on positive domestic equities and sharp decline in crude oil prices. FII inflows also supported Rupee," Anuj Choudhary Research Analyst, Sharekhan by BNP Paribas said, adding that firm Dollar capped sharp gains.

A firm tone in the US Dollar and deteriorating global risk sentiments weighed on the investor sentiment.

"Any further foreign inflows may support the Rupee. Crude oil prices slipped below USD 100/barrel yesterday. If crude sustains below USD 100 mark, it may support Rupee at lower levels," Choudhary said.

Traders would be looking at Federal Open Market Committee (FOMC) minutes too for clues to the Fed's possible rate hike paths, Choudhary said, adding that rupee may trade in the range of 78.50-80 in the next couple of sessions.

On the domestic equity market front, the BSE Sensex ended 616.62 points or 1.16 per cent higher at 53,750.97, while the broader NSE Nifty advanced 178.95 points or 1.13 per cent to 15,989.80.

The dollar index, which measures the greenback's strength against a basket of six currencies, was up 0.18 per cent at 106.72.

Recovering from a sharp 10 per cent decline on Tuesday, Brent crude futures, the global oil benchmark, rose by 1.26 per cent to USD 104.06 per barrel. Foreign institutional investors turned net buyers after a long gap in the capital market on Tuesday as they purchased shares worth Rs 1,295.84 crore, as per exchange data.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp