Rupee surges 32 paise to 75.89 against U.S. dollar in early trade

The rupee advanced 32 paise to 75.89 against the U.S. dollar in the opening trade on March 17, supported by positive domestic equities, broad dollar weakness and softening crude oil prices.

At the interbank foreign exchange, the rupee opened at 75.96 against the U.S. dollar and gained momentum to quote 75.89, a gain of 32 paise from the previous close.

On March 16, the rupee spurted by 41 paise to close at a nearly two-week high of 76.21 against the American currency.

The Indian rupee opened higher tracking overnight weakness in the greenback and crude oil, Reliance Securities said in a research note.

“Risk assets rose, and the dollar declined despite the Federal Reserve signalling an aggressive monetary tightening cycle and could also lend support to the rupee,” it added.

The U.S. Federal Reserve raised interest rates by 25 bps and signalled six more rate hikes this year.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.24% to 98.38.

Global oil benchmark Brent crude futures rose 1.75% to $99.74 per barrel.

On the domestic equity market front, Sensex was trading 999.94 points or 1.76% higher at 57,816.59, while the broader NSE Nifty rose 277.75 points, or 1.64%, to 17,253.10.

Foreign institutional investors emerged as net buyers in the capital market on March 16 as they purchased shares worth ₹311.99 crore, as per stock exchange data.