Mumbai, March 30 (PTI): Snapping its four-day winning run, the rupee on Wednesday dropped by 17 paise to close at 75.90 against the US dollar due to month-end dollar demand from oil importers and concerns over inflation after crude oil prices rebounded.
However, a strong rally in the domestic equities and foreign capital inflows capped the rupee's loss, forex traders said.
Development in the Russia-Ukraine conflict and the movement of crude oil prices remain the main focus for forex markets, they added.
At the interbank foreign exchange market, the rupee opened strong at 75.65 against the American dollar but soon entered the negative territory due to increased dollar demand from importers. During the session, it swung between a high of 75.62 and a low of 75.97.
The local unit finally settled at 75.90 against the dollar, down by 17 paise from the previous close.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.42 per cent to 98.02.
Global oil benchmark Brent crude futures surged 1.88 per cent to USD 112.30 per barrel.
At home, oil marketing companies raised prices of petrol and diesel by 80 paise a litre each on Wednesday, taking the total increase in rates in the last nine days to Rs 5.60 per litre. This is the ninth increase in prices since the ending of a four-and-half-month long hiatus in rate revision on March 22.
"Crude has been the driver for markets since last month as its prices have been highly volatile and economies suffer majorly. Rupee has been showing reflection directly. Going ahead till the time crude holds USD 100 level and resistance of USD 115 mark, rupee can be seen taking a range of 75.50-76.25," Jateen Trivedi, Senior Research Analyst at LKP Securities said.
Benchmark Sensex and Nifty on Wednesday rallied over 1 per cent to end at over six-week high levels amid hopes of a breakthrough in Russia-Ukraine peace talks.
The 30-share BSE Sensex surged by 740.34 points or 1.28 per cent to settle at over six-week high of 58,683.99. The broader NSE Nifty climbed 172.95 points or 1 per cent to settle at 17,498.25, the highest closing level since February 10.
Foreign institutional investors remained net buyers in the capital market for a second day as they bought shares worth Rs 1,216 crore, according to provisional stock exchange data.
Disclaimer: This story is auto-generated from news agency feeds and has not been edited by The Morung Express.
Source: PTI
