scorecardresearch
Rupee rises to 77.24 against US dollar in early trade

Rupee rises to 77.24 against US dollar in early trade

The rupee opened sharply strong at 77.27 against the American dollar at the interbank foreign exchange and gained more strength to quote 77.24 in early trade.

Rupee rises against US dollar in early trade Rupee rises against US dollar in early trade

The Indian Rupee, on Tuesday, increased 20 paise to 77.24 against the US dollar in early trade. On Monday, India’s official currency Rupee had declined by 54 paise to close at a record low of 77.44 against the US dollar. This is mostly due to the trend in domestic equity markets and receding global crude prices boosted investor sentiment.

The rupee opened sharply strong at 77.27 against the American dollar at the interbank foreign exchange and gained more strength to quote 77.24 in early trade. The dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.07 per cent to 103.58.

According to the forex traders, a weak American currency against its global rivals also helped the domestic unit to rise. However, the rising concerns over higher interest rates and worries about the global economic growth are still keeping the appreciation bias in check, they added.

On the domestic equity market front, the 30-share Sensex was trading 138.53 points or 0.25 per cent higher at 54,609.20, while the broader NSE Nifty gained 34.85 points or 0.21 per cent to 16,336.70.

Forex traders explained that the risk appetite has weakened amid rising US bond yields and increasing concerns about inflation that is likely to trigger more aggressive rate hikes by global central banks.

In the last two trading sessions, the rupee has lost 109 paise against the greenback.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.33 per cent higher at 104, tracking rising US yields amid fears about higher interest rates on Monday.

In addition to this, the Asian shares had also tumbled to their lowest in nearly two years as investors shed riskier assets on worries about higher interest rates and their impact on economic growth, while the dollar held near 20-year highs.

Across Asia, share indexes were a sea of red. The Nikkei lost 0.9 per cent, Australian shares shed 2.5 per cent and Korean stocks lost 2 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.8 per cent, falling for a seventh straight session and extending declines to 17 per cent so far this year.

S&P 500 stock futures and Dow Jones futures both fell 0.5 per cent and Nasdaq futures were down 0.6 per cent.

The S&P 500 ended below 4,000 for the first time since late March 2021, while the Nasdaq closed at its lowest level since November 2020.

(With input from agencies)

Published on: May 10, 2022, 9:38 AM IST
Posted by: Vivek Dubey, May 10, 2022, 9:35 AM IST