Rupee gains further ground, even as focus remains on elections' resultsThe rupee gained further ground on Thursday even as investors contemplated whether there would be a diplomatic solution from the planned talks between Russia and Ukraine.But the focus remains squarely on the elections' results in Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa.According to news agency Reuters, the energy-sensitive currency gained slightly to 76.2510 on Thursday.
While PTI said,at the interbank forex market, the rupee opened at 76.27 against the greenback and witnessed an intra-day high of 76.07 and a low of 76.46.The rupee finally finished at 76.43, registering a rise of 19 paise over its previous close of 76.62."The rupee opened on a strong note as the state election results are per market expectations.
Fighting in Ukraine is on a pause for the moment, and risk-on sentiments continue for the moment," said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.On Wednesday, the rupee gained to close at 76.62 against the US dollar following a retreat in crude oil prices and a rebound in domestic equities.That after the rupee fell to close at a lifetime low of 77 on Tuesday, weighed by surging crude oil prices.Meanwhile, the dollar index, which measures the greenback's strength against a basket of major currencies, advanced 0.16 per cent to 98.12.On Thursday, oil prices rose back up in volatile trades even as major crude producers pledged to plug the supply gap from the escalating Russia-Ukraine conflict.In the previous session, the plunge in oil prices was the deepest since the early pandemic days nearly two years ago.The benchmark Brent crude for the front-end month expiring on March 31 was up over 2 per cent to nearly $114 a barrel, as the US House passes bill banning Russian oil imports, bolstering the administration's response to Russia's war in Ukraine."Sentiments improved due to fall in oil prices and strong show by BJP in state elections.
However, the rupee is not out of the woods, as oil prices remain well supported above $100 a barrel.
We expect a range-bound play over the near-term between 76 and 77 on the spot rate," saidAnindya Banerjee, Vice President -Currency Derivatives and Interest Rate Derivatives at Kotak Securities.Counting votes is underway in five states where Assembly polls were held recently Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur.Domestic bourses surged for the third straight session, with the Sensex zooming 817 points or 1.50 per cent to settle at 55,464 and the broader NSE Nifty moving 250 points or 1.53 per cent higher to close at 16,595.Still, as per stock exchange data, foreign institutional investors (FIIs) were net sellers on Wednesday as they offloaded shares worth Rs 4,818.71 crores.