Rupee Recoups Some Losses, After Weakening To A New Record Previously

The rupee recouped some losses early on Wednesday after having slid for the fifth consecutive day on Tuesday, during which it hit a fresh record low of 77.05, with investors still assessing the impact from the United States' and Britain's decision to ban Russian oil imports.

The Press Trust of India (PTI) reported on Wednesday the rupee advanced 22 paise to 76.78 against the US dollar, supported by the weakness in the American dollar and recovery in domestic equity markets.

Forex traders said the rupee could remain range-bound and can witness high volatility amid the deepening Russia-Ukraine conflict.

At the interbank foreign exchange, the rupee opened at 76.90 against the US dollar, then gained momentum and touched 76.78, registering a gain of 22 paise from the previous close.

The energy-sensitive rupee depreciated by 7 paise to close at a lifetime low of 77 against the US dollar on Tuesday, weighed by surging crude oil prices amid the Russia-Ukraine war. 

According to PTI, the currency at the interbank forex market opened at 77.02 on Tuesday against the greenback and ranged between 76.71 and 77.05.

The rupee finally finished at 77.00, down 7 paise over its previous close of 76.93 against the greenback.

The surge in oil prices has directly correlated with the rupee's weakness on worries. The impact of that rise in energy costs would weigh on India's import bill, push up price pressures further and widen the trade deficit.

India imports nearly 80 per cent of its oil needs, and the purchasing power of the rupee dipping in international markets will hurt the overall economy and consumers.

Heavy foreign fund outflows and general risk aversion globally have also hurt the currency.