Rupee rises by 8 paise to close at 7656 as LIC IPO raises hopes of forex inflows
Mumbai Apr 26 PTI Snapping its two-day losing streak the rupee rose by 8 paise to close at 7656 against the US dollar on Tuesday following a rebound in regional currencies and expectations of foreign fund flows as the LIC IPO is likely to hit markets early in May A fall in crude oil prices also aided gains in the local unit However the appreciation bias in the local unit will be capped in the near term amid fears about the economic impact of Chinas COVID-19 lockdowns and an aggressive pace of the US rate hikes traders said At the interbank forex market the rupee opened at 7648 against the greenback and moved in a range of 7643 to 7669 in the day trade The rupee finally closed at 7656 higher by 8 paise over its previous close of 7664 Analysts said a rally in the stock markets and news of LIC IPO hitting the market during the first week of May supported the rupee Indian rupee inched up after two days of sharp sell-off following a rebound in regional currencies and domestic equities The fall in crude oil and commodity prices and expectations of foreign fund inflows from LIC IPO supported the rupee said Dilip Parmar Research Analyst HDFC Securities However the local unit is still not out of the woods as strength in the dollar against major currencies weaker economic growth and higher inflation are likely to limit the gains Broadly spot USDINR is expected to trade in the range of 76 to 77 while near term directions will be followed by risk moods and movement in Chinese yuan Parmar said LIC IPO is expected to attract foreign capital inflows which will be supportive for the rupee Therefore on one hand a strong US Dollar Index will keep USDINR above 76 but on the other hand LIC IPO and RBI intervention will keep the upside capped near 7680 levels on spot We expect a broad range of 76 and 7680 on spot said Anindya Banerjee VP Currency Derivatives Interest Rate Derivatives at Kotak Securities Ltd Jateen Trivedi Senior Research Analyst at LKP Securities said Rupee traded in the range of 7645-7665 with positive moves compared to yesterday Positive update on LIC IPO coming soon also helped inflows in the capital market giving strength to the rupee On the domestic equity market front the BSE Sensex ended 77672 points or 137 per cent higher at 5735661 while the broader NSE Nifty jumped 24685 points or 146 per cent to 1720080 Brent crude futures the global oil benchmark fell 049 per cent to USD 10182 per barrel The dollar index which gauges the greenbacks strength against a basket of six currencies surged 006 per cent to 10181 Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 117405 crore as per stock exchange data PTI DRR MR
Mumbai Apr 26 PTI Snapping its two-day losing streak the rupee rose by 8 paise to close at 7656 against the US dollar on Tuesday following a rebound in regional currencies and expectations of foreign fund flows as the LIC IPO is likely to hit markets early in May A fall in crude oil prices also aided gains in the local unit However the appreciation bias in the local unit will be capped in the near term amid fears about the economic impact of Chinas COVID-19 lockdowns and an aggressive pace of the US rate hikes traders said At the interbank forex market the rupee opened at 7648 against the greenback and moved in a range of 7643 to 7669 in the day trade The rupee finally closed at 7656 higher by 8 paise over its previous close of 7664 Analysts said a rally in the stock markets and news of LIC IPO hitting the market during the first week of May supported the rupee Indian rupee inched up after two days of sharp sell-off following a rebound in regional currencies and domestic equities The fall in crude oil and commodity prices and expectations of foreign fund inflows from LIC IPO supported the rupee said Dilip Parmar Research Analyst HDFC Securities However the local unit is still not out of the woods as strength in the dollar against major currencies weaker economic growth and higher inflation are likely to limit the gains Broadly spot USDINR is expected to trade in the range of 76 to 77 while near term directions will be followed by risk moods and movement in Chinese yuan Parmar said LIC IPO is expected to attract foreign capital inflows which will be supportive for the rupee Therefore on one hand a strong US Dollar Index will keep USDINR above 76 but on the other hand LIC IPO and RBI intervention will keep the upside capped near 7680 levels on spot We expect a broad range of 76 and 7680 on spot said Anindya Banerjee VP Currency Derivatives Interest Rate Derivatives at Kotak Securities Ltd Jateen Trivedi Senior Research Analyst at LKP Securities said Rupee traded in the range of 7645-7665 with positive moves compared to yesterday Positive update on LIC IPO coming soon also helped inflows in the capital market giving strength to the rupee On the domestic equity market front the BSE Sensex ended 77672 points or 137 per cent higher at 5735661 while the broader NSE Nifty jumped 24685 points or 146 per cent to 1720080 Brent crude futures the global oil benchmark fell 049 per cent to USD 10182 per barrel The dollar index which gauges the greenbacks strength against a basket of six currencies surged 006 per cent to 10181 Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth Rs 117405 crore as per stock exchange data PTI DRR MR
