Rupee closes at 74.59 against the US dollar at 23 Paisa as crude oil softens

Mumbai: Rupees at 74.61 against the US dollar on Wednesday due to greenbacks and pullbacks in crude oil prices after Western countries imposed some sanctions on Russia for sending troops to Ukrainian separatist-owned areas. The closing of the transaction was evaluated at 23 Paisa.

In the interbank forex market, the local unit opened at 74.64 against the greenback, with a daytime high of 74.54 and a low of 74.73.

The rupee finally settled at 74.61, recording a 23-paisa rise from the previous closing price. On Tuesday, the rupee fell at 29 Paisa and closed at 74.84 against the US currency.

“The rupee traded strongly as the weakness of the dollar and crude oil helped the rupee rise from 74.75 to 74.60. As long as crude oil is less than $ 95 a barrel, the rupee could remain strong. LKP Rupee can find support around 74.75 and resistance around 74.25 when the oil drop stops near $ 90 a barrel, said Jateen Trivedy, senior research analyst at Security’s.

Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.17 percent to 95.86.

Brent crude oil futures, the world’s oil benchmark, were trading at $ 95.97 a barrel, down 0.90%.

Investors hoped that Western sanctions against Russia after Moscow’s military movement near the Ukrainian border would ease Vladimir Putin’s rebellious tone and leave room for avoidance of the war.

Russian President Vladimir Putin signed a decree on Monday recognizing the regions of Ukraine’s Donetsk and the People’s Republic of Luhansk as independent, raising tensions in the region and raising concerns about Moscow’s invasion of Ukraine.

In retaliation, the United States, EU and Japan have announced numerous sanctions against Russia.

The meeting between the US Secretary of State and the Russian Foreign Minister scheduled for Thursday has also been cancelled.

According to Emkay Global Financial Services, “The SPOT USDINR pair continues to witness volatile sessions as tensions between Russia and Ukraine continue to dominate sentiment across the global market.” ..

“As the current situation escalate, the USDINR pair will rise towards 75.25 and the 75.72 target will be exceeded. Until then, we expect the market to absorb news flows in the 75.25-74.40 range.” Added.

On the domestic stock market side, the BSE Sensex fell 68.62 points or 0.12 percent to close at 57,232.06, while the wider NSE Nifty fell 28.95 points or 0.17 percent to 17,063.25.

According to stock exchange data, foreign institutional investors were selling online as they offloaded stocks worth R3,245.52 in the capital markets on Tuesday.