Rupee Vs Dollar: Rupee recovers 12 paise to close at 77.32 against US dollar

Rupee Vs Dollar: The rupee on Tuesday rose 12 paise to 77.32 (provisional) against the US dollar, which supported a rebound in regional currencies and a fall in crude oil prices, as per PTI reported.

However, forex traders indicated that weak domestic equities and persistent foreign fund outflows limited the gains.

According to PTI, the rupee opened strong at 77.27 against the dollar on the interbank forex market, moving between 77.20 and 77.45 in the day trade. The rupee closed the day at 77.32, up 12 paise from its previous close.

The rupee had dropped 54 paise versus the dollar in the previous session, closing at a record low of 77.44.

The rupee recovered some lost ground after touching a life low of 77.53 on Monday. Rebound in risk assets and stronger regional currencies supported the rupee in today's session, said PTI.

"Some stabilisation in risk sentiment after a few days' sell-off could help the local currency while rebound crude oil prices and fund outflows could adversely impact the rupee," said Dilip Parmar, Research Analyst, HDFC Securities.

The Fed's tightening, concerns about GDP, and an unsettled risk environment augur well for the greenback. However, because the dollar index has been experiencing significant resistance at around 104, short-term profit booking cannot be ruled out, he noted.

On the domestic equity market front, the BSE Sensex slid 105.82 points, or 0.19 percent, to 54,364.85, while the broader NSE Nifty was down 61.80 points, or 0.38 percent, to 16,240.05, PTI said.

The global oil benchmark, Brent crude futures, slid 1.15 percent to USD 104.72 a barrel.

The dollar index, which measures the strength of the greenback against a basket of six currencies, increased 0.3% to 103.68, said PTI.

According to stock exchange data, foreign institutional investors remained net sellers in the capital market on Monday, offloading shares worth Rs 3,361.80 crore.