Rupee Ends 28 Paise Lower At 70.97 Against Dollar
The rupee declined by 28 paise to end at 70.97 against the dollar on Wednesday. The currency opened at 70.80 and fell to 71.01 against the dollar in intraday deal. According to analysts, continuing uncertainty over the US-China trade deal affected currency market sentiment worldwide. However, robust foreign fund inflows and easing crude oil prices restricted the fall for the rupee, they added. The rupee had settled at 70.69 against the US currency on Tuesday.
According to Rahul Gupta, Head of Currency, Emkay Global Financial Services, the rupee-dollar spot market has been in a depreciating mode for the past three weeks. "Depreciation is getting capped as market has started getting doubtful of the silence amid China's attempts to push the US to remove more tariffs," he said.
Foreign institutional investors, meanwhile, bought equities worth Rs 1,011.49 crore on Wednesday, provisional exchange data showed.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.14 per cent to 97.84.
Domestic stock markets registered sharp gains on Wednesday led by gains in HDFC Bank, ICICI Bank, HDFC, Infosys, Kotak Mahindra Bank and Axis Bank. The S&P BSE Sensex ended 222 points or 0.55 per cent higher at an all-time high of 40,470 and the Nifty 50 index rose 49 points or 0.41 per cent to shut shop at 11,966.
Oil prices declined, pulled down by a larger-than-expected build in US crude stocks and weak euro zone economic figures, after gaining for three sessions on expectations of an easing in US-China trade tension. Brent futures - the global benchmark for crude oil - was last seen trading down at $62.79 per barrel.
According to Amit Pabari, Managing Director, CR Forex Advisors, US-China trade developments will be closely watched by the market in the near future. "If they reach a trade deal, Yuan will have the room to strengthen further and this will likely increase Reserve Bank of India's tolerance for rupee appreciation," he said.
