Markets

Rupee gains 12 paise to close at 78.94 against U.S. dollar

File photo for representation.

File photo for representation. | Photo Credit: REUTERS

The rupee rebounded from its all-time low to close 12 paise higher at 78.94 (provisional) against the U.S. dollar on Friday.

At the interbank forex market, the local unit opened at 78.99 against the greenback and fell to an intra-day low of 79.12.

It finally settled at 78.94, a rise of 12 paise over its previous close.

"The Indian government's effort of tightening exports of oil and imports of gold fell short to change the market mood as the participants remained worried about capital outflows, risk-off sentiments and widening deficit," said Dilip Parmar, Research Analyst, HDFC Securities.

The recent decline in rupee has been roughly in line with other regional currencies. It is likely to remain under pressure in the near future as long as outflows continue with tighter dollar liquidity, Mr. Parmar said, adding, "Spot USD-INR is having resistance at 79.30 and support at 78.70 with a bullish bias."

On the domestic equity market front, the BSE Sensex ended 111.01 points or 0.21% lower at 52,907.93, while the broader NSE Nifty declined 28.20 points or 0.18% to 15,752.05.

The dollar index, which measures the greenback's strength against a basket of six currencies, was up 0.30% at 105.

Brent crude futures, the global oil benchmark, rose 1.79% to $110.98 per barrel.

Foreign institutional investors remained net sellers in the capital market on Thursday as they offloaded shares worth ₹1,138.05 crore, as per stock exchange data.


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Printable version | Aug 6, 2022 12:57:37 pm | https://www.thehindu.com/business/markets/rupee-gains-12-paise-to-close-at-7894-against-us-dollar/article65589201.ece