Indian Rupee: Respite From Easing Dollar To Be Offset By Rebound In Crude Oil

26 Apr 2022 , 09:02 AM

The Indian rupee could see some respite in early trades on Tuesday, 26 April 2022 as dollar is off its overnight peaks although rebound in crude oil prices could dampen sentiments. Sustained foreign fund outflows, persistent fears of rising China covid cases and its overall impact on global economic outlook continues to keep risk appetite lower.

On Monday, rupee declined 26 paise to close at 76.68 against the US dollar. At the interbank foreign exchange market, the rupee opened lower at 76.58 against the American currency, and finally settled for the day at 76.68, down 26 paise over its previous close. During the trading session, the rupee witnessed an intra-day high of 76.55 and a low of 76.77. On Friday, the rupee had closed 25 paise lower at 76.42.

Domestic benchmark indices declined for the second trading session on Monday amid weak global cues. The barometer index, S&P BSE Sensex slumped 617.26 points or 1.08% at 56,579.89. The Nifty 50 index lost 218 points or 1.27% to 16,953.95. Foreign portfolio investors (FPIs) sold shares worth Rs 3,302.85 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 1,870.45 crore in the Indian equity market on 25 April, provisional data showed.

Overseas, Asian stocks are trading mixed on Tuesday as investors are set to closely watch market reaction to COVID fears in China as Beijing expands mass testing. Wall Street rose on Monday, with the Nasdaq ending sharply higher after Twitter agreed to be bought by billionaire Elon Musk, sparking a late day rally in growth stocks. Twitter jumped roughly 5.7% after the social media company announced it accepted billionaire Elon Musks buyout deal valued at about $44 billion.

Meanwhile, the dollar index, which measures the greenback against six main peers, was at 101.58, after jumping 0.58% on Monday and hitting a two-year peak of 101.86. It has gained 3.3% so far this month, which would be its largest month of gains since November 2015.

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