Rupee advances 9 paise to close at 7624 against dollar on fall in crude oil
Mumbai Mar 25 PTI The rupee rose further by 9 paise to close at 7624 against the US dollar on Friday following a fall in crude oil prices and weakness in the American currency in the overseas markets At the interbank forex market the local unit opened at 7615 against the greenback and witnessed an intra-day high of 7612 and a low of 7629 The rupee settled at 7624 registering a rise of 9 paise over its previous close of 7633 Meanwhile the dollar index which measures the greenbacks strength against a basket of six currencies fell 016 per cent to 9862 The rupee rebounded amid dollar softness and lower crude oil prices but trimmed the early gains following weaker domestic equities and foreign fund outflows said Dilip Parmar Research Analyst HDFC Securities Ahead of the financial year-end the rupee tends to show a high swing on the back of rebalancing-related inflows and outflows Parmar added The balance of risks for USDINR remains skewed to the upside following geopolitical worries and broad based selling by foreign institutions Spot USDINR is expected to settle in the range of 76 to 7650 this month medium term direction remains bullish as long as it holds 7570 Parmar noted Brent crude futures the global oil benchmark declined 127 per cent to USD 11752 per barrel According to Emkay Global Financial Services geo-political tensions continued to dominate market sentiments this week The members of the G7 countries said that they are ready to apply additional sanctions as required and will spare no efforts to hold Putin and his supporters accountable The US went ahead with imposing fresh sanctions on a dozen of Russian defence firms Global markets are clearly worried that the sanctions will affect the economic recovery going forward it said Crude oil prices have so far gained 10 per cent this week as European nations also mull sanctions on Russian oil and gas imports US central bankers were very active this week as most of them were unanimous in their call for aggressive rate hikes this year to curb soaring inflation in the US Any further upside in crude oil prices next week will put the rupee under pressure This will trigger a move towards 777714 levels again On the contrary any positive developments in the talks between Russia and Ukraine will help the Rupee strengthen towards 75777550 levels it added On a weekly basis the rupee depreciated 40 paise against the American currency According to Sriram Iyer Senior Research Analyst at Reliance Securities the Indian rupee appreciated on Friday against the US Dollar tracking the fall of the oil prices and marginally weaker greenback However the local unit ended weaker for the week largely due to the volatility in crude oil prices which dampened sentiment for risk assets in the region We might witness the Rupee appreciating further next week towards 7600 levels as foreign-currency inflows are expected next week which usually is seen at the end of the financial year Iyer said However investors will remain wary of the situation in Eastern Europe and escalation of tension there will push oil higher and in turn keep appreciating bias limited Iyer added On the domestic equity market front the BSE Sensex ended 23348 points or 041 per cent lower at 5736220 while the broader NSE Nifty slumped 6975 points or 04 per cent to 1715300 Foreign institutional investors remained net sellers in the capital market on Thursday as they sold shares worth Rs 174071 crore according to stock exchange data PTI DRR MR MR
Mumbai Mar 25 PTI The rupee rose further by 9 paise to close at 7624 against the US dollar on Friday following a fall in crude oil prices and weakness in the American currency in the overseas markets At the interbank forex market the local unit opened at 7615 against the greenback and witnessed an intra-day high of 7612 and a low of 7629 The rupee settled at 7624 registering a rise of 9 paise over its previous close of 7633 Meanwhile the dollar index which measures the greenbacks strength against a basket of six currencies fell 016 per cent to 9862 The rupee rebounded amid dollar softness and lower crude oil prices but trimmed the early gains following weaker domestic equities and foreign fund outflows said Dilip Parmar Research Analyst HDFC Securities Ahead of the financial year-end the rupee tends to show a high swing on the back of rebalancing-related inflows and outflows Parmar added The balance of risks for USDINR remains skewed to the upside following geopolitical worries and broad based selling by foreign institutions Spot USDINR is expected to settle in the range of 76 to 7650 this month medium term direction remains bullish as long as it holds 7570 Parmar noted Brent crude futures the global oil benchmark declined 127 per cent to USD 11752 per barrel According to Emkay Global Financial Services geo-political tensions continued to dominate market sentiments this week The members of the G7 countries said that they are ready to apply additional sanctions as required and will spare no efforts to hold Putin and his supporters accountable The US went ahead with imposing fresh sanctions on a dozen of Russian defence firms Global markets are clearly worried that the sanctions will affect the economic recovery going forward it said Crude oil prices have so far gained 10 per cent this week as European nations also mull sanctions on Russian oil and gas imports US central bankers were very active this week as most of them were unanimous in their call for aggressive rate hikes this year to curb soaring inflation in the US Any further upside in crude oil prices next week will put the rupee under pressure This will trigger a move towards 777714 levels again On the contrary any positive developments in the talks between Russia and Ukraine will help the Rupee strengthen towards 75777550 levels it added On a weekly basis the rupee depreciated 40 paise against the American currency According to Sriram Iyer Senior Research Analyst at Reliance Securities the Indian rupee appreciated on Friday against the US Dollar tracking the fall of the oil prices and marginally weaker greenback However the local unit ended weaker for the week largely due to the volatility in crude oil prices which dampened sentiment for risk assets in the region We might witness the Rupee appreciating further next week towards 7600 levels as foreign-currency inflows are expected next week which usually is seen at the end of the financial year Iyer said However investors will remain wary of the situation in Eastern Europe and escalation of tension there will push oil higher and in turn keep appreciating bias limited Iyer added On the domestic equity market front the BSE Sensex ended 23348 points or 041 per cent lower at 5736220 while the broader NSE Nifty slumped 6975 points or 04 per cent to 1715300 Foreign institutional investors remained net sellers in the capital market on Thursday as they sold shares worth Rs 174071 crore according to stock exchange data PTI DRR MR MR
