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Rupee Edges Higher To Close At 70.79 Against Dollar: 10 Things To Know
27 Nov 2018, 06:44 PM IST 
The rupee on Monday fell by 18 paise to close at 70.87 against the US dollar.
- At the interbank forex market, the rupee opened lower at 70.91 and lost further ground to hit a low of 71.02 on a stronger dollar, strengthening US yields and worries about escalation in US-China trade war. The local unit, however, pared the initial losses and finally settled the day on a higher note at 70.79 to the US dollar, up 8 paise.
- According to V K Sharma, Head PCG and Capital Markets Group, HDFC Securities, "The rupee recovered sharply from the day's low in the second half after Chinese Foreign Ministry spoke of mutual beneficiary agreement between US President Donald Trump and his Chinese counterpart."
- The 10-year government bond yield remained almost flat at 7.732 per cent from its previous close of 7.727 per cent. The dollar remained strong at almost two-week high of 97.19 against the basket of global currencies.
- Globally, Brent crude, the international benchmark, was trading 0.23 per cent higher at $60.62 per barrel.
- The domestic stock markets closed in the green after a volatile session on Tuesday. The S&P BSE Sensex closed 159.06 points or 0.45 per cent higher at 35,513.14, while the broader Nifty50 barometer of the National Stock Exchange (NSE) settled at 10,685.60, up 57 points or 0.54 per cent.
- Foreign institutional investors (FIIs) made fresh purchases worth Rs 811.52 crore on Tuesday, according to the provisional data.
- On Monday, Reserve Bank of India (RBI) partially eased a requirement for companies to hedge dollars while raising funds from overseas markets. RBI said companies would now be required to hedge 70 per cent of their external commercial borrowings (ECB) for maturity periods of three to five years, instead of the full exposure.
- Earlier last month, government allowed state oil marketing firms to raise $10 billion in overseas loans without hedging the dollars.
- The rupee has declined nearly 10 per cent against the dollar since the beginning of the year.
- The rupee lost 2.1 per cent in September, compared with a drop of 3.6 per cent in August, the worst since August 2015. In October, the rupee weakened by about 2 per cent, news agency Reuters reported citing Refinitiv data. (With inputs from agencies)