The Indian rupee was trading higher by 24 paise to 71.75 against the US dollar in late morning deals today, reported news agency Press Trust of India (PTI). The rise in Indian currency is due to the sustained bouts of dollar selling from banks and exporters. Earlier, the rupee resumed slightly higher at 71.95 against Thursday's closing level of 71.99 a dollar. The Reserve Bank of India intervened heavily in the foreign exchange market on Friday, mounting a formidable defence of the 72 rupee to the dollar mark in a reversal of its light-handed approach in the last few weeks, said a Reuters report.
Here are key things to know:
1. On Thursday, the rupee declined 24 paise to close at 71.99 against the US dollar, extending its fall to the seventh session in a row. The rupee dipped below the 72 level against the American currency for the first time during Thursday's session.
2. "The rupee is expected to remain under pressure. The RBI is intervening very selectively to contain volatility. It is not intervening aggressively. Due to absence of meaningful intervention by the RBI, there is lot of speculative dollar buying in the market. Since the 72 level has been broken the immediate levels to watch out is 72.50-73.00. We expect some kind of reversal from 72.50-73.00 levels. But the appreciation in the rupee will not last longer as importers may rush to cover their unhedged exposure on every appreciation opportunity in the rupee", said Rushabh Maru, Research Analyst, Anand Rathi Shares and Stock Brokers.
3. Meanwhile, the benchmark equity indices opened on a negative note on Friday. At 9:37 am, the S&P BSE Sensex plunged 119.60 or 0.31 per cent to trade at 38,123.21. The broader Nifty50 was trading at 11,502.15, down 34.75 points or 0.30 per cent.
4. Asian shares carved out a 14-month trough on Friday as investors feared a new salvo of Sino-U.S. tariffs could come at any moment, while a slump in U.S. chip stocks rippled through the tech-heavy region.
5. Oil prices were stable on Friday, as the market balanced a fall in U.S. crude inventories to the lowest levels since 2015, with Sino-American trade tensions and economic weakness from emerging markets. (With agencies inputs)