The rupee strengthened and closed below 76 per dollar on Tuesday, marking gains for the fourth consecutive session, tracking broad gains in equities and a general rush into riskier assets.
That happened even as crude oil prices rebounded. In fact, the benchmark Brent crude oil price rose about 1.7 percent to trade around $ 114 a barrel after falling as low as $ 109.97 a barrel earlier in the day. That came a day after oil prices fell about 7 percent on Monday.
The rupee was last quoted at 75.99 by Reuters, while PTI said the currency registered a 19 paise gain from its previous close of 76.16 against the US dollar, to close temporarily at 75.97.
On the interbank forex market, PTI reported that the rupee opened higher at 75.97 but lost some gains to hit today’s low of 76.15. But the currency rose to an all -time high of 75.90.
The domestic bourse closed higher for a second consecutive session amid strong global indicators, but for the energy-sensitive rupee, risks remain from rising crude oil prices and continued capital outflows.
In fact, foreign institutional investors (FII) remained net sellers in the Indian capital market on Monday as they sold shares worth Rs 801.41 crore.