Forex traders said developments in the Russia-Ukraine conflict and volatility in crude oil prices are the main focus for forex markets.
Forex traders said developments in the Russia-Ukraine conflict and volatility in crude oil prices are the main focus for forex markets.
The rupee on Wednesday fell 21 paise to 75.94 against the US dollar, as rise in crude oil prices and hike in fuel rates by oil marketing companies fueled fears of inflation and hike in interest rates.
However, a strong rally in domestic equity markets limited the losses in the rupee, forex traders said.
He said developments in the Russia-Ukraine conflict and volatility in crude oil prices remain the main focus for forex markets.
At the interbank forex market, the rupee opened stronger at 75.65 against the US dollar, but soon turned negative territory as investors left riskier assets. During the session, it fluctuated between a high of 75.62 and a low of 75.97.
The local unit finally settled at 75.94 against the dollar, down 21 paise from its previous close.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.42 per cent to 98.02.
Global oil benchmark Brent crude futures rose 1.88% to $112.30 a barrel.
Domestically, oil marketing companies on Wednesday hiked petrol and diesel prices by 80 paise per liter, taking the total increase in rates to ₹5.60 per liter in the last nine days. This is the ninth increase in prices since the end of a four-and-a-half-month-long hiatus in the rate revision on March 22.
Foreign institutional investors were net buyers in the capital market on Tuesday as they bought shares worth Rs 35.47 crore, according to stock exchange data.