Rupee surges 29 paise to close at 76.21 against US dollar

The rupee appreciated 29 paise to settle at 76.21 (provisional) against the US dollar on Wednesday, tracking positive domestic equities and some moderation in crude oil prices.

At the interbank forex market, the domestic unit opened at 76.41 against the US dollar and touched an intra-day high of 76.16 and finally closed at 76.21, registering a rise of 29 paise over its previous close.

On Tuesday, the rupee had dropped 21 paise to close at 76.50.

"The rupee is currently trading slightly higher today on overnight decline in crude oil prices and positive domestic equity markets. Softer US Dollar is also supporting rupee," said Praveen Singh, AVP- Fundamental currencies and Commodities analyst, Sharekhan by BNP Paribas.

Also read: In crisis-hit Sri Lanka petrol prices surge, to cost LKR 338 per litre

Singh further said, "We expect Indian Rupee to decline again from higher levels as overall sentiments remain negative for Rupee. Geopolitical tensions due to tensions between Russia and Ukraine may again put downside pressure on the Rupee."

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.60 per cent lower at 100.35.

"The US Dollar is also expected to recover from lower levels as hawkish Federal Reserve and elevated US bond yields may continue to support the greenback," Singh said.

Also read: India says no plans for now to buy Russian oil in rupees

On the domestic equity market front, the 30-share BSE Sensex ended 574.35 points or 1.02 per cent higher at 57,037.50, while the broader NSE Nifty surged 177.90 points or 1.05 per cent to 17,136.55.

Brent crude futures, the global oil benchmark, inched up 0.76 per cent to USD 108.06 per barrel.

Foreign institutional investors were net sellers in the capital market on Tuesday as they offloaded shares worth ₹5,871.69 crore, as per stock exchange data.