Rupee closes 7 paise higher at 77.47 against dollar from record low

On May 17, the rupee closed strongly in domestic stock markets with a gain of 7 paise from its all-time intraday low of 77.79.

After opening lower at 77.67, the local unit fell to its all-time intra-day low of 77.79 on a sharp rise in crude oil prices and disappointing macroeconomic data.

However, a strong rally in domestic equities helped the rupee rebound and closed at 77.48 (Provisional), showing a net profit of 7 paise over the last close of 77.55. The forex market was closed on Monday on account of Buddha Purnima.

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

Global oil benchmark Brent crude futures rose 0.74% to $115.09 a barrel.

“The Indian rupee depreciated on Tuesday on buoyant crude oil prices and disappointing macroeconomic data. However, a softer tone in the US dollar and risk sentiments in global markets have dampened the downside,” said Praveen Singh, AVP – Fundamental Currencies and Commodities Analyst, Sharekhan by BNP Paribas.

Wholesale price-based inflation hit a record high of 15.08% in April, mainly on rising prices of food, fuel and other commodities, prompting the Reserve Bank to hike interest rates in the upcoming monetary policy review next month. can do

A positive undertone in risk assets and weak economic data led to the dollar’s fall.

“However, overall volatile risk sentiment and concerns over the global economic recovery may intensify. Tension due to Ukraine war may also weigh on the rupee,” Mr Singh said, adding that the rupee may trade in the range of 76.80-78.30 in the next few sessions.

India’s merchandise exports rose 30.7% to $40.19 billion in April on healthy performance from sectors such as petroleum products, electronic goods and chemicals, the commerce ministry said on Friday, even as the trade deficit widened to 20.11 during the month. Billion dollars done.

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

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