Early trading sees Rupee rise 5 paise to 79.47 against US dollar
On Wednesday, the rupee declined by 35 paise to close at 79.52 against the US currency, and today it witnessed a rise by 5 paise and closed at 79.47.
Early on Thursday, the rupee traded in a range as a strong American dollar and worries about the hawkish US Fed offset the support from strong domestic equities. At the interbank foreign exchange, the domestic unit touched 79.47 in initial deals after starting at 79.53 against the dollar, gaining 5 paise from its previous close.
On Wednesday, the rupee declined by 35 paise to close at 79.52 against the US currency. The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.06 per cent to 109.72.
Brent crude futures, the global oil benchmark, fell 0.11 per cent to USD 94 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 275.51 points or 0.46 per cent up at 60,622.48. Similarly, the broader NSE Nifty rose 36.15 points or 0.2 per cent to 18,039.90. According to provisional data, foreign institutional investors (FIIs) were net sellers in the capital markets, as they offloaded shares worth Rs 1,397.51 crore on Wednesday.
“Asian currencies are still on the weaker side against USD which will not allow the rupee to gain much against the dollar. The range for the day is expected between 79.30 to 79.80 as the market braces for a 75 basis points rate hike by FED,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
India’s trade deficit was wider though export figures were also revised to slightly higher. “Trade deficit still remains a matter of concern for the country,” Bhansali said.
India’s exports rose marginally by 1.62 per cent to USD 33.92 billion, while the trade deficit more than doubled to USD 27.98 billion in August due to increased crude oil imports, the commerce ministry data showed on Wednesday.
The revised data showed that imports rose by 37.28 per cent to USD 61.9 billion in August this year.
The dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.33 per cent to 106.33
At the interbank foreign exchange market, the local unit opened at 81.84 and later witnessed an intraday high of 81.74 and a low of 81.91 during the session
At the interbank foreign exchange market, the local unit opened up at 81.59 and later erased all its early gains. During the session, it witnessed a high of 81.52 and a low of 81.78