Rupee trades in a range as dollar retreats from 20-year highThe rupee ended almost flat on Tuesday even as the dollar took a breather from two-decade high as investors paused to reassess European policymakers response to the escalating energy crisis ahead of key central bank meetings.Bloomberg quoted the rupee at 79.8425 per dollar, from its previous close of 79.8488, with the currency in a trading range of 79.7912 to 79.9075. PTI reported that the rupee ended provisionally flat at 79.78 against the US dollar.”The rupee traded in a narrow range and volatility was low as most market participants were on the sidelines following the US market holiday,” Gaurang Somaiya, Forex & Bullion Analyst at Motilal Oswal Financial Services, told PTI.Mr Somaiya added that the dollar rose to a fresh 20-year high against its major crosses.After Moscow’s decision of gas supply cuts on Monday, the atmosphere on Tuesday was noticeably calmer. There was also hope that Liz Truss, the new prime minister of Britain, would announce an immediate aid programme there, but the market wounds caused by rising energy prices were obvious.Tuesday saw gains for the euro, the pound, and European stock markets after previously rising gas prices fell 10 per cent.Still, even the euro’s rise of 0.45 per cent failed to lift it above parity with the dollar.”Maybe it’s natural that we take a bit of a breather here, but it’s hard to see where the good news will come from,” Abrdn investment director James Athey, told Reuters.Russia’s gas would remain the “Damocles sword” hanging over Europe’s economy he added, while the scale of interest rate rises likely to come and the risk of recessions was still not fully reflected.”We are still in a strong dollar, weak risk environment for the foreseeable future,” Mr Athey said.
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