INSUBCONTINENT EXCLUSIVE:
Rupee recoups losses, tracking lower oil and risk-assets' reboundThe energy-sensitive rupee jumped nearly 0.5% on Friday and recouped some
losses after it suffered its worst session in more than 10 months on Thursday, supported by a retreat in oil prices and a rebound in
domestic equities, tracking the increase in global risk appetite.Investors' optimism was driven by the coordinated sanctions against Russia
that targeted its banks, which helped a tentative rebound in global stocks, with the flight-to-safety trades easing somewhat in
bargain-hunting ahead of the weekend.The rupee was last changing hands at 75.33 per dollar, a gain of about 0.5% from Thursday's close of
75.60, tracking the fall in the greenback against a basket of currencies. On Thursday, the rupee sank 1.5 per cent, to close at 75.60
against the US dollar, as markets remained on edge over the deepening Ukraine crisis.Oil prices initially fell back sharply but were still
above $100 a barrel, while the glitter of gold lost its shine.Still, the stock jump was modest, and markets remained significantly down from
levels at the start of the week.Indeed, while Indian equity indices rebounded and finished higher after falling for seven straight sessions
on Friday, the BSE Sensex index and the Nifty were down about 3.5 per cent for the week."Global markets took a breather as the fresh US
sanctions did not target Russia's oil exports or their SWIFT global payment network access
However, the market will continue to remain volatile, tracking new developments in the Russia-Ukraine war," Vinod Nair, Head of Research at
Geojit Financial Services, told PTI."From an India perspective, the greater risk comes from the impact of rising geopolitical tensions on
crude oil and commodity prices
If crude sustains over $100, it could create a negative economic impact in the form of rising inflation and a deterioration in the current
account deficit," he added.
