Rupee jumps 36 paise against US dollar on crude cool-off

The recovery was also supported by dollar-selling

November 14, 2018 08:00 pm | Updated 08:00 pm IST - Mumbai

The rupee gained 36 paise to end at 72.31 against the US dollar on Wednesday as global crude oil prices hovered near one-year lows, easing concerns over expanding current account deficit and inflation.

The recovery was also supported by dollar-selling by exporters and banks, foreign fund inflows and the greenback’s weakness against some currencies overseas, traders said.

Brent crude, the international benchmark, dropped almost 7% to a one-year low of USD 65 a barrel, before staging a modest recovery.

U.S. President Donald Trump urged the Organization of the Petroleum Exporting Countries (OPEC) to maintain their current policy of gradually increasing output, which helps to cap oil prices.

At the interbank forex market, the rupee commenced with strength at 72.18 and appreciated further to 71.99 against the US dollar.

However, it lost some momentum and finally finished at 72.31, showing a gain of 36 paise.

The rupee had climbed 22 paise to close at 72.67 against the US dollar on Tuesday.

“Rupee hit the 72-mark against US dollar for the first time since September in the morning session after sharp fall in oil and gains in stocks stepped up demand expectations for the currency.

“However, reports showing WPI hitting four-month high, along with a pull back in oil and dollar, prompted rupee to give away some gains. Traders will be eyeing RBI’s move to conduct OMO to infuse ₹120 billion to the system tomorrow, with trade deficit figures also due shortly, while US dollar will take cues from Fed Chairman’s speech later Wednesday,” said Anand James, Chief Market Strategist at Geojit Financial Services.

Foreign institutional investors (FIIs) net bought shares worth ₹277.38 crore on Wednesday, as per provisional data.

Meanwhile, benchmark Sensex ended marginally lower at 35,141.99 as losses in pharma and information technology shares offset gains in energy, banking and metal stocks amid weak global cues.

The broader NSE Nifty, after shuttling between 10,651.60 and 10.532.70 points on alternate bouts of buying and selling, closed 6.20 points, or 0.06%, down at 10,576.30.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.