Rupee gains a touch in a volatile session on Monday, supported by equities’ rally

The Indian rupee gained a touch to close provisionally at 76.55 per dollar on Monday, after it did a U-turn on Friday to pare gains from earlier in the session to close over 0.4 per cent weaker At 76.61.

Domestic stocks started on a high at the start at the week, with the Sensex rallying over 900 Points as crude oil rates dipped.

Indeed, the benchmark Brent crude oil lost over 3.5 per cent to last trade around $108 per barrel, easing fears of runaway inflation. But as the Russia-Ukraine conflict rages on, traders warned a reversal is not too far away.

The energy-sensitive rupee was quoted by news agency Reuters at 76.58 against the dollar, while the PTI said, the currency finally settled at 76.55 against the dollar, from the previous close of 76.61 per dollar.

At the interbank foreign exchange market, the rupee opened at 76.63 against the dollar. During the day, it swung between 76.52 and 76.69 per dollar.

The wholesale price-based inflation in February rose to 13.11 per cent on hardening of prices of crude oil and non-food items, even though food articles softened.

After two months of mild easing, WPI inflation accelerated in February and remained in double digits for the 11th consecutive month, beginning April 2021.

What has not helped the rupee in recent days is the capital outflows.

Foreign institutional investors continued their selling spree in Indian markets as they offloaded shares worth Rs 2,263.90 crore on a net basis on Friday, as per stock exchange data.