Rupee rises by 22 paise to close at 79.02 against USD as oil prices decline

The rupee appreciated by 22 paise to close at 79.02 (provisional) against the US dollar on Monday on risk-on sentiments, decline in crude oil prices and weak American currency.

At the interbank forex market, the local unit opened higher at 79.16 on gains in stocks and fall in crude oil.

The rupee touched a high of 79.00 and a low of 79.22 before settling at 79.02 (provisional). In the previous session, the rupee had closed at 79.24 against the US dollar.

The dollar index, which measures the greenback's strength against a basket of six currencies, was down 0.52 per cent at 105.34.

Brent crude futures, the global oil benchmark, fell 1.21 per cent to USD 102.71 per barrel.

According to Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas, Indian rupee appreciated on risk on sentiments, decline in crude oil prices and weak US Dollar.

Moreover, India's Manufacturing PMI rose to 56.4 in July compared to 53.9 in June, and this also supported the rupee.

"We expect Rupee to trade mixed to positive on weak US Dollar and positive global risk sentiments. FII inflows and weak crude oil prices may also support Rupee. However, concerns over global recession and worries over inflation may sharp upside.

"Markets may also take cues from US ISM manufacturing data today and RBI's monetary policy outcome towards the end of the week. USDINR spot price is expected to trade in a range of Rs 78.50 to Rs 80 in next couple of sessions," Choudhary said.

On the domestic equity market front, the BSE Sensex ended 545.25 points or 0.95 per cent higher at 58,115.50, while the broader NSE Nifty advanced 181.80 points or 1.06 per cent to 17,340.05.

Foreign institutional investors were net buyers in the capital market on Friday, purchasing shares worth Rs 1,046.32 crore, as per exchange data.