Rupee surges 25 paise to close at 75.07 against US dollar

FPJ Web DeskUpdated: Wednesday, February 16, 2022, 06:21 PM IST
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At the interbank forex market, the local unit opened at 75.24 against the greenback and witnessed an intra-day high of 74.96 and a low of 75.24. It finally settled at 75.07, a rise of 25 paise over its previous close../Representative image |

Amid signs of de-escalation in the Russia-Ukraine conflict, the rupee appreciated by 25 paise to close at 75.07 (provisional) against the US dollar on Wednesday.

The USD-INR pair made a gap-down opening at 75.20 levels and traded in the range of 74.97-75.20 with a downside bias, said Abhishek Goenka, Founder & CEO, IFA Global. The USD-INR pair has closed the trading session at 75.07. The RBI set the reference rate at 75.0815.

The USDINR pair slipped today due to improvement in the global risk sentiment after geopolitical tensions related to the Russia-Ukraine conflict eased. As a consequence, the dollar came off its weekly highs and remained largely weak against other major currencies.

At the interbank forex market, the local unit opened at 75.24 against the greenback and witnessed an intra-day high of 74.96 and a low of 75.24. It finally settled at 75.07, a rise of 25 paise over its previous close.

Anindya Banerjee, DVP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd said, USD-INR spot closed 25 paise lower at 75.07 on the back of long liquidation. Improvement in risk sentiments and softness in the US Dollar Index allowed the Rupee to strengthen against the US Dollar. Tonight focus will be on US FOMC minutes. The US money market is pricing 6/7 hikes over this year with some possibility of a 50 bps hike in March. A hawkish Fed and strong crude oil prices can limit the downside in USDINR. We expect a range of 74.80 and 75.40 on spot.

On Tuesday, the rupee had snapped its five-session losing streak and surged 28 paise to close at 75.32.

US President Joe Biden has said that the US is ready to respond "decisively" to a Russian attack on Ukraine which is still very much a possibility, urging Moscow to step back from the brink of war.

Biden said the US is still open for diplomacy to resolve the issue while stressing that more than 150,000 Russian troops remain on the Ukrainian border.

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, fell 0.19 per cent to 95.80.

On the domestic equity market front, the BSE Sensex ended 145.37 points or 0.25 per cent lower at 57,996.68, while the broader NSE Nifty declined 30.25 points or 0.17 per cent to 17,322.20.

Brent crude futures, the global oil benchmark, was trading 0.80 per cent higher at USD 94.03 per barrel.

Foreign institutional investors were net sellers in the capital market on Tuesday, as they offloaded shares worth Rs 2,298.76 crore, as per stock exchange data.

(With PTI inputs)

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