Indian currency bounces back from record low

24 Jun 2022 , 10:36 AM

Despite crude oil prices declining, the rupee opened Friday at 78.20 against the US dollar, 12 paise higher than its record low.

The opening rate for the rupee at the interbank foreign exchange was 78.20 versus the US dollar. The local currency’s value versus the US dollar ranged from 78.19 to 78.24 in the opening trading.

The rupee’s closing value versus the US dollar on Thursday was 78.32, which was an all-time low. The dollar index, which measures the strength of the dollar against a basket of six different currencies, was trading 0.16 percent down at 104.26 at the time.

Benchmark Brent crude futures for world oil decreased 0.21% to USD 109.82 per barrel. The rupee began at 78.20 against the dollar as the dollar index marginally declined, while Brent continued to trade at levels around USD 110 per barrel, according to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

Bhansali predicted that the rupee will fluctuate between 78 and 78.40 as long as foreign portfolio investors (FPIs) and oil corporations kept buying US dollars and the Reserve Bank of India kept selling and protecting the rupee.

The 30-share Sensex was up 481.95 points, or 0.92 percent, at 52,747.67 on the domestic equities market, while the larger NSE Nifty was up 124.95 points, or 0.8%, at 15,681.60.

According to stock exchange statistics, foreign institutional investors continued to be net sellers in the capital market on Thursday, selling shares worth Rs 2,319.06 crore.