The rupee recovered some of its previous losses on Wednesday, supported by a rebound in domestic equity markets, after sliding for five consecutive days, during which it hit multiple record lows.
While oil prices climbed further to near $130 a barrel, the rupee, which opened at 76.90 per dollar, gained momentum to last trade up about 20 paise at 76.795, as per Reuters.
While the Press Trust of India reported that the rupee rebounded 44 paise to close at 76.56 (provisional) against US dollar.
Forex traders at the start of the day had said the rupee could remain range-bound and witness high volatility amid the deepening Russia-Ukraine conflict.
According to PTI, the energy-sensitive rupee depreciated by seven paise to close at a lifetime low of 77 against the US dollar on Tuesday, after having hit an all-time low of 77.05 against the greenback.
The surge in oil prices has directly correlated with the rupee’s weakness on worries.
The impact of that rise in energy costs and the rupee’s waning purchasing power as it has weakened to several record lows in recent days would weigh on India’s import bill, as the country depends internationally for about 80 per cent of its oil needs.
In turn, that is likely to push up price pressures further and widen the trade deficit.
Domestic bourses rallied, with the Sensex up 1,223 points to close at 54,647, while Nifty ended near 16,350.