The rupee extended its gains on Tuesday, rising by 25 pounds to settle at 75.28 (provisional) against the US dollar, as the US currency and crude oil prices retreated from recent highs.
Forex traders said the weakness of the US dollar against its major rivals boosted investor sentiment, even as local stocks settled on a negative note.
In the interbank forex market, the local unit opened at 75.54 against the US dollar and touched the intraday high at 75.28 and finally closed at 75.28, recording an increase of 25 pounds from the previous close.
On Monday, the rupee started the 2022-23 fiscal year on an upward trend, jumping 21 pounds to close at a one-month high of 75.53.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, was down 0.09 percent at 98.90.
“Continuing risk sentiment, weak dollar index and stronger (Asian) regional currencies support local unity in the northward movement,” said Dilip Parmar, Research Analyst, HDFC Securities.
“Globally, investors are assessing actions against Russia and the outlook for economic growth in China as Shanghai remains in lockdown. The focus in the near term will remain the monetary policy decision and position of the Reserve Bank of India,” Parmar added.
On the local stock market front, the BSE Sensex 30-share index closed down 435.24 points, or 0.72 percent, at 60,176.50, and the broader NSE Nifty index fell 96.00 points, or 0.53 percent, to 17957.40.
Brent crude futures, the global oil standard, rose 1.04 percent to $108.65 a barrel.
Foreign institutional investors remained net buyers in the capital market on Monday, buying shares worth Rs 1,152.21 crore, according to stock exchange data.
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