Sunday, September 25, 2022

Rupee gains 7 paise toclose at 77.98 against USD

Rising for the third straight session, the rupee appreciated by 7 paise to settle at 77.98 against the US dollar on Monday as crude oil prices retreated from elevated levels. However, unabated foreign fund outflows restricted the gains, forex dealers said.
At the interbank forex market, the local unit opened strong at 77.98 against the greenback and witnessed an intra-day high of 77.87 and a low of 78.03. It finally settled at 77.98, a rise of 7 paise over its previous close of 78.05. “Rupee consolidated in a broad range despite volatility in domestic and global equities. Fed projection showed economic growth slowing to a below-trend rate of 1.7 per cent,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
On the domestic equity market front, the BSE Sensex ended 237.42 points or 0.46 per cent higher at 51,597.84 after a six-session slide. The broader NSE Nifty advanced 56.65 points or 0.37 per cent to 15,350.15.
The dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.37 per cent at 104.31. Brent crude futures, the global oil benchmark, fell 0.11 per cent to USD 112.99 per barrel.
Foreign institutional investors remained net sellers in the capital market on Monday as they offloaded shares worth Rs 1,217.12 crore, as per exchange data.
“The Indian Rupee appreciated against the dollar supported by a fall in global oil prices. However, concerns of more aggressive rate hikes by global central banks to bring inflation down, slow global economic growth and the risk of a recession kept appreciation capped,” said Sriram Iyer, Senior Research Analyst at Reliance Securities.
Jateen Trivedi, VP Research Analyst at LKP Securities, said the rupee traded with minor gains on the back of softer crude prices.
“Crude prices staying below USD 115 shall help the rupee to remain above 78. Any rise in crude towards USD 120 shall again push the rupee below 78 strongly. Going ahead range for rupee can be seen at 77.75-78.15,” he noted.