2 hrs ago
Rupee Gains 23 Paise as Softer Dollar Offers Relief
The rupee is India’s money, and it became a little stronger against the US dollar on Friday morning.
It reached 96.65 rupees for one dollar.
The dollar weakened slightly, and oil prices also fell, which gave the rupee some help.
Traders also suspected that India’s central bank may have supported the rupee.
The rupee had lost value the day before.
Investors from outside India continued to sell Indian shares, which can add pressure to the rupee.
Uncertainty about events involving Iran also worried markets.
Even so, Indian share indexes were higher in early trading.
The rupee rose 23 paise to 96.65 against the US dollar in early trading on Friday.
It opened at 96.74, recovering from Thursday’s close of 96.88 after a 13-paise decline.
A softer dollar, lower crude prices and suspected Reserve Bank of India intervention supported the currency.
Traders said geopolitical uncertainty and continuing foreign fund outflows remained pressures on the rupee.
Foreign institutional investors sold equities worth Rs 12,943.58 crore net on Thursday, while domestic indexes traded higher.
- Who
- The Indian rupee, with market factors including the US dollar, foreign investors and the Reserve Bank of India.
- What
- The rupee gained 23 paise to 96.65 against the US dollar in early trading.
- Where
- The interbank foreign exchange market in India.
- When
- Friday, October 9, following a 13-paise fall on Thursday.
- Why
- A softer US dollar, lower crude prices and suspected Reserve Bank of India intervention supported the rupee, while geopolitical uncertainty and foreign fund outflows continued to weigh on it.
Key facts
- Rupee early-trading level
- 96.65 per US dollar
- Change
- Up 23 paise
- Opening rate
- 96.74 per US dollar
- Previous close
- 96.88 per US dollar on Thursday
- Dollar index
- 102.03, down 0.10 per cent
- Brent crude futures
- The reports give differing figures: USD 103.14 per barrel, down 1.09 per cent, and USD 103.39 per barrel.
- Net foreign institutional investor sales
- Rs 12,943.58 crore on Thursday
- Domestic equities
- Sensex at 71,876.10; Nifty at 22,310.40, up 84.60 points
Quotes
Anil Kumar Bhansali
Head of Treasury and Executive Director at Finrex Treasury Advisors LLP
“Sustained strength in the US Dollar Index (DXY trading near multi-month highs near to 102.50), Brent crude prices firming back above USD 104 per barrel, and relentless foreign portfolio outflows from domestic equities kept dollar demand elevated among oil marketing companies and importers.”
deccanchronicle.com
Sources
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