Rupee recovers from record lows to end 7 paise higher at 77.47 against dollar

Dollar declined on positive undertone in the risk assets and weak economic data

The rupee on May 17 recovered from its all-time intra day low of 77.79 to close higher by 7 paise on a stellar rally in domestic stock markets.

After opening lower at 77.67, the local unit plunged further to its all-time intra-day low of 77.79 due to a spike in crude oil prices and disappointing macroeconomic data.

However, a strong rally in domestic equities helped the rupee rebound and close at 77.48 (provisional), showing net gains of 7 paise over the last close of 77.55. The Forex market was closed on Monday on the account of Buddha Purnima.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.41% to 103.75.

Brent crude futures, the global oil benchmark, surged 0.74% to $115.09 per barrel.

“The Indian rupee depreciated on Tuesday on a surge in crude oil prices and disappointing macroeconomic data. However, soft tone in the US Dollar and risk-on sentiments in global markets have cushioned the downside,” said Praveen Singh, AVP - Fundamental currencies and Commodities analyst, Sharekhan by BNP Paribas.

Wholesale price-based inflation soared to a record high of 15.08% in April mainly on account of spiralling prices of food, fuel and other commodities, which may prompt the Reserve Bank to hike interest rates in upcoming monetary policy review next month.