Rupee rises by 8 paise to 76.16 against U.S. dollar as crude oil decline

The rupee appreciated 8 paise to 76.16 against the U.S. dollar on March 28, supported by positive domestic equities and a fall in global crude oil prices.

However, a strengthening American currency overseas and concerns over renewed foreign capital outflows capped the gains in the domestic unit, Forex traders said.

At the interbank forex market, the local unit opened weak at 76.36 but entered positive territory later in the session. It witnessed an intra-day high of 76.15 and a low of 76.38.

The rupee traded at 76.16 at 1530 hrs, registering a rise of 8 paise over its previous close. In the previous session, the rupee had settled at 76.24 against the U.S. dollar.

“Rupee has been oscillating between 76 and 76.50 for the last six trading sessions. Even after a stronger dollar index, the rupee manages to add gains amid lower crude oil prices, higher equities and corporates dollar selling.

“The fate of the rupee will be decided by the price action of crude oil and risk sentiments. Spot USD/INR is expected to trade in the range of 76 to 76.50 this month,” Dilip Parmar, Research Analyst, HDFC Securities, said.

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.32% to 99.13.

Brent crude futures, the global oil benchmark, fell sharply by 3.56% to $116.35 per barrel.

On the domestic equity market front, the BSE Sensex ended 231.29 points or 0.40% higher at 57,593.49, while the broader NSE Nifty advanced 69 points or 0.40% to 17,222.

Foreign institutional investors remained net sellers in the capital market on Friday as they sold shares worth ₹1,507.37 crore, according to stock exchange data.

Overseas investors have pulled out a net ₹1,14,855.97 crore from the Indian markets in the current year so far, amid heightened geopolitical tensions and inflation concerns.

Foreign portfolio investors have sold domestic equities worth ₹48,261.65 crore so far this month, taking the year-to-date tally this year to a massive ₹1,14,855.97 crore, according to depositories data.