The rupee recovers from a record low and ends 7 paise higher at 77.47 to the dollar

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The rupee recovered from its all-time intraday low of 77.79 on Tuesday to close up 7 paise on a stellar rally in domestic equity markets.

After opening lower at 77.67, the local unit dipped further to its all-time intraday low of 77.79 on a surge in crude oil prices and disappointing macro data.

However, a strong rally in domestic equities helped the rupiah rebound and close at 77.48 (tentative), posting net gains of 7 paise from the last close of 77.55. The foreign exchange market was closed on Monday on Buddha Purnima’s account.

The dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.41% to 103.75.

Brent futures, the global oil benchmark, jumped 0.74% to $115.09 a barrel.

“The Indian rupee depreciated on Tuesday on a surge in crude oil prices and disappointing macro data. However, the soft tone of the US dollar and risky sentiments in global markets cushioned the decline,” he said. said Praveen Singh, Assistant Vice President – Fundamental Currencies and Commodities Analyst, Sharekhan of BNP Paribas.

Wholesale-based inflation hit a record high of 15.08% in April, driven mainly by soaring food, fuel and other commodity prices, which could prompt the Bank reserve to raise interest rates in the next monetary policy review next month.

The dollar fell on a positive basis of risk assets and weak economic data.

“However, overall fragile risk sentiments and concerns over the global economic recovery could plateau sharply. Tensions due to the war in Ukraine could also weigh on the rupiah,” Singh said, adding that the rupiah could trade lower. a range of 76.80 to 78.30 in the next two sessions.

The Commerce Ministry said Friday that India’s merchandise exports jumped 30.7% to $40.19 billion in April due to the strong performance of sectors such as petroleum products, electronics and chemicals, even as the trade deficit widened to $20.11 billion during the month.

On the domestic stock market front, the BSE Sensex ended up 1,344.63 points or 2.54% at 54,318.47, while the broader NSE Nifty jumped 417.00 points or 2.63 % to 16,259.30.

Foreign institutional investors remained net sellers in the capital market on Monday as they dumped shares worth Rs 1,788.93 crore, according to stock market data.

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

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