Rupee opens 32 paise higher at 71.70 against dollar in early trade amid revival of Sino-US trade talk hopes

At the interbank foreign exchange on Tuesday, the rupee opened at 71.70, registering a rise of 32 paise over its previous close of 72.02.

Press Trust of India August 27, 2019 10:33:12 IST
Rupee opens 32 paise higher at 71.70 against dollar in early trade amid revival of Sino-US trade talk hopes
  • The domestic unit pared some gains and was trading at 71.85 against the dollar at 1001 hrs

  • Market participants said rising crude oil prices and foreign fund outflows weighed on local currency

  • The rupee on Monday had declined by 36 paise to close below the 72-level

Mumbai: The rupee appreciated by 32 paise to 71.70 against the US dollar in early trade on Tuesday amid revival of US-China trade talk hopes and gains in the domestic equity market.

The rupee on Monday had declined by 36 paise to close below the 72-level against the US currency for the first time in nine months, hit by a 'flash crash' in global currencies due to uncertainty over the trade front.

At the interbank foreign exchange on Tuesday, the rupee opened at 71.70, registering a rise of 32 paise over its previous close of 72.02.

The domestic unit pared some gains and was trading at 71.85 against the dollar at 1001 hrs.

Forex traders said higher opening in domestic equities and the latest remark by US President Donald Trump on trade talk with China enthused investors.

Rupee opens 32 paise higher at 7170 against dollar in early trade amid revival of SinoUS trade talk hopes

Representational image. Reuters.

Trump said his trade negotiators had received two "very good calls" from China and it was a sign that China is serious about reaching a deal and that talks would begin soon.

"I think we're going to have a deal, because now we're dealing on proper terms. They understand and we understand," Trump said.

Market participants, however, said rising crude oil prices and foreign fund outflows weighed on local currency.

Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 752.90 crore on Monday, according to provisional exchange data.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.08 percent to 98.00.

Brent crude futures, the global oil benchmark, rose 0.51 percent to trade at $59.00 per barrel.

Domestic bourses opened on a positive note on Tuesday with benchmark indices Sensex trading 83.20 points higher at 37,577.32 and Nifty up 45.80 points at 11,103.65.

The 10-year government bond yield was at 6.44 percent in morning trade.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

In Maharashtra's Thane, medicos give 106-year-old woman who beat COVID-19 warm farewell
India

In Maharashtra's Thane, medicos give 106-year-old woman who beat COVID-19 warm farewell

After the Dombivli-based centenarian contracted the disease, no hospital was initially ready to admit her due to her age, said her daughter-in-law

US-China trade war: WTO says American tariffs on Beijing in 2018 broke global trade rules
World

US-China trade war: WTO says American tariffs on Beijing in 2018 broke global trade rules

The Donald Trump administration has continued to play an active role in the World Trade Organisation, but many of Trump’s biggest trade offensives over the past three years have bypassed the organisation’s rules

Huawei says, starting 2021, its smartphones will run HarmonyOS instead of Android
News & Analysis

Huawei says, starting 2021, its smartphones will run HarmonyOS instead of Android

The source code for HarmonyOS will be made available beginning in December to software developers.