Forex

Rupee strengthens to 63.75 as govt lowers additional market borrowing needs

Agencies Jan 17 | Updated on January 24, 2018 Published on January 17, 2018

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The rupee strengthened to 63.75 as the Government has lowered its additional borrowing plan to Rs 20,000 crore for the fiscal from the earlier proposal of raising an extra Rs 50,000 crore from the market. The reduced borrowing would help contain fiscal deficit within the target.

Dollar selling by banks and exporters also supported the rupee. The domestic unit opened weak by 3 paise at 64.07 at the Interbank Foreign Exchange market today. It hovered in a range of 64.07 and 63.75 before quoting at 63.86, up 18 paise at 4.35 pm local time.

Yesterday, the rupee had lost 55 paise or nearly 1 per cent -- its biggest single-day crash in eight months -- to end at a fresh two-week low of 64.04 against the US dollar, hit by a double whammy of rising global crude prices and worsening trade deficit.

Meanwhile, the 30-share BSE index Sensex jumped 310.77 points or 0.89 per cent to 35,081.82, breaking its previous record of 34,843.51 reached on January 15. Similarly, the 50-share NSE index Nifty rose 88.1 points or 0.82 per cent to 10,788.55, breaking its previous record of 10,741.55 hit on January 15.

In the overseas market, the euro fell on Wednesday after rocketing to a fresh three-year high in early trade above the $1.23 line as some investors ramped up bullish bets about the currency though some concerns from policymakers this week damped broader optimism.

The dollar index was up 0.3 per cent at 90.684, after dropping to its lowest since December, 2014 to 90.113 early in the session.

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Published on January 17, 2018
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