Rupee ends 12 paise higher against US dollar

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Rupee ends 12 paise higher against US dollar

Following its two day losing streak, the rupee appreciated 12 paise to end at 77.32 provisional against the US dollar on Tuesday, supported by a rebound in regional currencies and a fall in crude oil prices.

The gains were restricted by weak domestic equities and persistent foreign fund outflows, according to forex traders.

In the day trade, the rupee opened strong against the dollar at 77.27 and moved in a range of 77.20 to 77.45. The rupee ended up at 77.32, 12 paise higher than its previous close.

In the previous session, the rupee had slumped 54 paise to close at a record low of 77.44 against the US dollar.

The rupee recovered some lost ground after touching a life low of 77.53 on Monday. There was a rebound in risk assets and stronger regional currencies that supported the rupee in today's session. 'Some stabilization in risk sentiment after a few days' sell off could help the local currency while rebound crude oil prices and fund outflows could adversely affect the rupee, said Dilip Parmar, research analyst at HDFC Securities.

The backdrop of the Fed tightening, growth concerns and an unstable risk environment, is a good sign for the greenback. He said that short-term profit bookings can't be ruled out of the dollar index, as it has been facing stiff resistance at around 104.

The BSE Sensex ended up with 105.82 points or 0.19 percent lower than 54,364 on the domestic equity market front. The broader NSE Nifty fell by 61.80 points or 0.38 percent to 16,240, while the NSE Nifty fell by 61.80 points or 0.38 percent. Brent crude futures, the global oil benchmark, fell 1.15 percent to USD 104.72 per barrel.

The dollar index, which measures the strength of the dollar against a basket of six currencies, rose 0.03 percent to 103.68.

Foreign institutional investors remained net sellers in the capital market on Monday as they offloaded shares worth Rs 3,361. Stock exchange data shows that 80 crore are being made up of.