Rupee rises 17 paise to 71.67 against dollar in early trade amid US, China agreement to resume trade talks next month

  • The domestic unit could not hold on to the gains and was trading at 71.73 against the dollar

  • Higher opening in domestic equities supported the local unit

  • On Thursday, rupee had settled for the day with gains of 28 paise at 71.84 against the US dollar

Mumbai: The Indian rupee appreciated by 17 paise to 71.67 against the US dollar in early trade on Friday as gains in domestic equity market and resumption of US-China trade talks in October strengthened investor sentiments.

At the interbank foreign exchange the rupee opened at 71.87, then gained further ground and touched a high of 71.67, registering a rise of 17 paise over its previous close.

On Thursday, rupee had settled for the day with gains of 28 paise at 71.84 against the US dollar.

The domestic unit, however, could not hold on to the gains and was trading at 71.73 against the dollar.

Forex traders said investors were optimistic about the US-China trade talks in October.

China and the US have agreed to hold the next round of trade negotiations in Washington in early October to end the bruising trade war.

 Rupee rises 17 paise to 71.67 against dollar in early trade amid US, China agreement to resume trade talks next month

Representational image. Reuters.

Besides, higher opening in domestic equities supported the local unit.

Domestic bourses opened on a positive note on Friday with benchmark indices Sensex trading 153.43 points higher at 36,797.85 and Nifty up 44.20 points at 10,892.10.

Moreover, weakening of the American currency vis-a-vis other currencies overseas also dragged the rupee down. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell marginally by 0.01 per cent to 98.40.

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

Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 561.17 crore on Thursday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 0.25 percent to trade at $61.10 per barrel.

The 10-year government bond yield was at 6.59 percent in morning trade.

Updated Date: Sep 06, 2019 12:18:29 IST