Forex

Rupee gains 30 paise against dollar in opening trade

PTI | Updated on December 28, 2018 Published on December 28, 2018

A study on the rupee over the last 10 years indicates that the current recovery can extend further in the coming weeks   -  Muralinath

The rupee rose by 30 paise to 70.05 against the US currency in opening trade on Friday aided by foreign fund inflows amid a weak dollar globally and sharp fall in crude oil prices.

Domestic stock markets opened with gains of up to 1 per cent, which also supported the local currency.

The US dollar fell against major global currencies as investors turned their focus to safe-haven currencies amid renewed worries over US-China trade tensions and global economic growth.

The dollar index, which gauges the American currency’s strength against a basket of six currencies, was down 0.23 per cent at 96.35. Overnight losses in crude oil also supported early gains in the rupee, analysts said.

Crude oil declined by 4.24 per cent to $52.16 per barrel on Thursday after reports of an increase in US inventories. The oil prices, however, recovered their losses on Friday to trade 2.26 per cent higher at $53.34 a barrel.

At the Interbank Foreign Exchange, the rupee opened strong at 70.05 a dollar against the previous close of 70.35. The domestic unit moved in a tight range of 70.1250 to 70.03 in early trade.

The rupee was quoted at 70.10 to the US dollar at 0935 hrs, showing gains of 25 paise or 0.36 per cent.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,731.91 crore on Thursday on a net basis.

Published on December 28, 2018
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