Re snaps 5-session losing streak

Mumbai: Snapping its five-session losing streak, the rupee surged 28 paise to close at 75.32 against the US dollar on Tuesday amid signs of easing Russia-Ukraine tensions. A recovery in domestic equities and weakness of the greenback overseas further helped the domestic currency, analysts said.

At the interbank forex market, the local unit opened on a weak note at 75.60 against the greenback and witnessed an intra-day high of 75.31 and a low of 75.72. It finally settled at 75.32, a rise of 28 paise over its previous close.

On Monday, the rupee had slumped by 24 paise to close at an over nine-week low of 75.60. Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, fell 0.37 per cent to 96.01.

"In the second half the rupee appreciated sharply after reports that some Russian troops are asked to return to its base after completing drills, a move that could de-escalate friction between Moscow and the West," said Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services.

Somaiya added that "volatility could remain elevated for the next couple of sessions until we don't get clarity on the situation. Market participants will be keeping an eye on the PPI number and a higher number could extend gains for the dollar." Russia said on Tuesday that some units participating in military exercises would begin returning to their bases.