The strength of the U.S dollar in the international market caused the rupee to weaken 12 paise to 79.90 against the dollar in Tuesday’s opening session. The rupee depreciated 12 paise from its previous level to start the day at 79.90 against the dollar on the interbank foreign exchange market.
The rupee gained nine paise on Monday, ending the day at 79.78 against the dollar. The dollar index, which measures the strength of the dollar against a basket of six different currencies, increased 0.08 percent to 109.62. The dollar index dipped slightly from the 110 level as the rupee started trading at 79.80. Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, said that the euro and the pound rose following a sharp decline brought on by Russian gas problems.
According to Bhansali, “U.S. dollar was well bid as the rupee fell to 79.90 levels before recovering to 79.85 levels,” adding that the expected range is between 79.50 and 80. Benchmark Brent crude futures for world crude oil fell 0.8 percent to $94.97 a barrel.
The BSE Sensex was up 94 points, or 0.16 percent, at 59,337 on the domestic equities market, while the larger NSE Nifty was up 44 points, or 0.23 percent, at 17,706. According to exchange data, foreign institutional investors sold shares worth 811.75 crores on Monday, making them net sellers in the capital market.
