Rupee jumps 36 paise to close at 72.31 against dollar on crude oil prices cool-off
At the interbank forex market, the rupee commenced with strength at 72.18 and appreciated further to 71.99 against the US dollar in intra-day trade.
Mumbai: The rupee gained 36 paise to end at 72.31 against the US dollar on Wednesday as global crude oil prices hovered near one-year lows, easing concerns over expanding current account deficit and inflation.
The recovery was also supported by dollar-selling by exporters and banks, foreign fund inflows and the greenback's weakness against some currencies overseas, traders said.
Brent crude, the international benchmark, dropped almost 7 percent to a one-year low of $65 a barrel, before staging a modest recovery.
US President Donald Trump urged the Organization of the Petroleum Exporting Countries (OPEC) to maintain their current policy of gradually increasing output, which helps to cap oil prices.
At the interbank forex market, the rupee commenced with strength at 72.18 and appreciated further to 71.99 against the US dollar.
However, it lost some momentum and finally finished at 72.31, showing a gain of 36 paise.
The rupee had climbed 22 paise to close at 72.67 against the US dollar on Tuesday.
"Rupee hit the 72-mark against US dollar for the first time since September in the morning session after a sharp fall in oil and gains in stocks stepped up demand expectations for the currency.
"However, reports showing WPI hitting a four-month high, along with a pullback in oil and dollar, prompted rupee to give away some gains. Traders will be eyeing RBI's move to conduct OMO to infuse Rs 120 billion to the system tomorrow, with trade deficit figures also due shortly, while US dollar will take cues from Fed Chairman's speech later Wednesday," said Anand James, Chief Market Strategist at Geojit Financial Services.
Foreign institutional investors (FIIs) net bought shares worth Rs 277.38 crore Wednesday, as per provisional data.
Meanwhile, benchmark Sensex ended marginally lower at 35,141.99 as losses in pharma and information technology shares offset gains in energy, banking and metal stocks amid weak global cues.
The broader NSE Nifty, after shuttling between 10,651.60 and 10.532.70 points on alternate bouts of buying and selling, closed 6.20 points, or 0.06 percent, down at 10,576.30.
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Rupee gains for 6th straight session, rises 21 paise to close at 71.46 against dollar as crude oil prices soften
This is the sixth straight session of gains for the rupee as the US dollar weakened against some currencies overseas
Snapping its four-day rising streak, the rupee on Monday dropped by 88 paise, its biggest single-day loss in more than three months, to close at 70.46 against the US currency as oil prices rebounded and the US currency gained strength
The rupee declined by 22 paise to close at 71.90 against the US dollar on Friday amid strengthening of the greenback and cautious trading in the domestic equity market.