Rupee trades in narrow range against U.S. dollar in early trade

On April 4, the rupee shot up 21 paise, closing at a monthly high of 75.53 against the US dollar.

On April 4, the rupee shot up 21 paise, closing at a monthly high of 75.53 against the US dollar.

The rupee started out on a flat note on April 5, following the dollar’s strength in the overseas market and elevated crude oil prices.

On the interbank currencies, the rupee opened at $75.54 against the US dollar and moved within a narrow range. It hit an early high of 75.47 in the early deals.

On Monday, the rupee started fiscal year 2022-23 on a bullish note. It shot 21 paise to close at 75.53 against the US dollar, its high in a month.

Meanwhile, global Brent crude oil futures rose 1.27% to $108.90 a barrel as geopolitical uncertainty from the protracted conflict in Ukraine persisted.

The dollar index, which measures the dollar’s strength against a basket of six currencies, rose 0.03% to 99.02 as the prospect of heightened sanctions against Russia pushed investors to the safety of the dollar.

In the domestic stock market, Sensex 30 shares traded 248.08 points or 0.41% lower at 60,363.66, while the broader NSE Nifty fell 55.45 points or 0.31% to 17,997.95.

Foreign institutional investors remained net buyers in the capital market on Monday as they bought shares worth ₹1,152.21 crore, according to stock market data.

“Oil back near 110 and lower opening for USD-INR at 75.45 indicates the amount of inflow into the system. Range from 75.20 to 75.60 as we await US Fed minutes to be filed on Wednesday and the decision of the MPC meeting on April 8,” said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.

Bhansali also noted that “fighting in Ukraine appears to have ended for the time being, but it could flare up if the West continues to impose sanctions on Russia.”

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