Rupee rises 9 paise to 69.58 in early trade amid reports on India’s arrangement for alternate crude oil sources
The rupee was also buoyed on reports that India has lined up alternate sources to make up for likely shortfall in crude supplies, forex dealers said.
A strong US dollar against major global currencies capped gains of the domestic unit
At the Interbank Foreign Exchange market, the domestic unit opened higher at 69.63
The rupee had declined by 32 paise to a two-week low of 69.67 against the US dollar Monday
Mumbai: The rupee appreciated by 9 paise to 69.58 against the US dollar on Tuesday ahead of the RBI's second round of dollar-rupee swap auction.
The currency was also buoyed on reports that India has lined up alternate sources to make up for likely shortfall in crude supplies, forex dealers said.
Besides, a positive start of the equity markets influenced recovery of the rupee, they added.
However, a strong US dollar against major global currencies capped gains of the domestic unit.
The Reserve Bank of India (RBI) is set to inject long-term liquidity worth $5 billion into the banking system through dollar-rupee buy-sell swap for a tenure of three years, the second such auction within a month.
At the Interbank Foreign Exchange market, the domestic unit opened higher at 69.63 against the dollar then rose further to quote at 69.58, up 9 paise over its previous close.
The rupee had declined by 32 paise to a two-week low of 69.67 against the US dollar Monday.
According to the dealers, the RBI's dollar-rupee swap auction would help absorb dollar inflows that could make the rupee stronger.
India, the second biggest buyer of Iranian oil, has lined up alternate sources to make up for the likely shortfall in supplies after the US decided not to give waiver from its sanctions for buying oil from the Persian Gulf nation, as per the sources.
Meanwhile, the BSE Sensex was trading 152.78 points or 0.40 percent higher at 38,797.96. The NSE Nifty too rose 40.35 points, or 0.35 percent, to 11,634.80.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03 percent to 97.31.
Brent crude futures, the global oil benchmark, was trading higher by 0.39 percent at $74.33 per barrel.
Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 73.08 crore on Monday, provisional exchange data showed.
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.
At $0.6 bn, India records current account surplus in fourth quarter of FY20 for first time in 13 years, says RBI
The RBI data also showed the current account deficit for the October-December quarter of fiscal 2019-20 was revised to $2.6 billion or 0.4 percent of GDP from $1.4 billion earlier.
Only way a bank can survive is by growing or else NPAs will become unmanageable: KV Kamath tells Network18
The interest rates have started dropping, but they need to drop even further if the banks have to come around without too much pain, veteran banker KV Kamath tells Network18 Group Editor-in-Chief Rahul Joshi in an exclusive interview.
The ACB had recently raided the office and residence of former CEO Vasudeva Maiya and a few other executives of the bank in connection with a fraud case