Indian Rupee: Elevated Crude Oil Prices To Weigh

31 May 2022 , 09:07 AM

Elevated crude oil prices and dollar recovery overnight is expected to keep rupee sentiment damp in opening trades on Tuesday, 31 May 2022. However, improving risk sentiment globally, higher equities and continued faith of foreign investors in Indian markets could aid gains in the domestic currency. On Monday, rupee inched 4 paise higher to close at 77.54 against the dollar. At the interbank forex market, the rupee opened at 77.53 against the greenback and moved in a range of 77.46 to 77.56 in the days trade. The rupee finally ended at 77.54, higher by 4 paise over its previous close of 77.58. Domestic benchmark indices ended with robust gains on Monday, extending gains for the third day. Positive global cues boosted sentiment. The barometer index, the S&P BSE Sensex, soared 1041.08 points or 1.90% to 55,925.74. The Nifty 50 index added 308.95 points or 1.89% to 16,661.40. The 50-unit index has climbed 3.97% in three days. Foreign portfolio investors (FPIs) bought shares worth Rs 502.08 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,524.49 crore in the Indian equity market on 30 May 2022, provisional data showed. The US Dow Jones index futures were up 13 points. The U.S. stock market was shut on Monday due to the Memorial Day holiday. Asian shares were trading higher on Tuesday as investors reacted to the official Chinese factory activity data for May. Meanwhile, the dollar index, which measures the greenback against a basket of currencies snapped a three-day downtrend around a five-week low, and is currently quoting near 101.65 levels. Oil prices rose after European Union leaders agreed on a fresh sanctions against Russia for its invasion of Ukraine. The agreement would ?effectively cut around 90% of oil imports from Russia to the EU by the end of the year,? European Commission President Ursula von der Leyen said. Powered by Commodity Insights