The rupee rose 21 paise to 74.63 paise in early trading on Wednesday, following the rise in domestic equities as investors closely watched the latest developments in Ukraine. In the interbank foreign exchange market, the local currency opened strongly at 74.64 to the dollar and rose slightly to 74.63, a gain of 21 paise from its previous close. The rupee lost 29 paise against the US dollar on Tuesday, closing at 74.84. Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, rose 0.04% to 96.06.
In retaliation, the US, EU and Japan announced a series of sanctions against Russia. The meeting between the US Secretary of State and the Russian Foreign Minister which was also to take place on Thursday has been canceled. On the domestic stock market front, the 30-stock Sensex traded 218.36 points or 0.38% higher at 57,519.04, while the broader NSE Nifty advanced 66.00 points or 0.39 % to 17,158.20. Brent futures, the global oil benchmark, rose 0.31% to $97.14 a barrel. Foreign institutional investors were net sellers in the capital market on Tuesday as they sold shares worth Rs 3,245.52 crore, according to stock market data.
The Indian rupee opened stronger against the U.S. dollar on Wednesday as the greenback fell and crude oil prices also saw a correction from Tuesday’s highs and heightened sentiment, said Sriram Iyer, senior analyst at research at Reliance Securities. However, most Asian and emerging market currencies were still weaker against the US dollar as a cautious tone could set in and limit the currency’s appreciation bias. Russian President Vladimir Putin on Monday signed decrees recognizing the independence of Ukraine’s Donetsk regions and Lugansk People’s Republics, which has heightened tension in the region and heightened fears of an invasion of Ukraine by Moscow.
Summary of news:
- In early trading, the Indian rupee was up 21 paise at 74.63 against the US dollar.
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