Profit

Rupee Edges Higher From 5-Month Low: 10 Things To Know

Analysts say some pressure is likely to continue in the currency due to the escalating tensions on the US-China trade front.

 Share
EMAIL
PRINT
COMMENTS
Rupee Edges Higher From 5-Month Low: 10  Things To Know

The rupee took support from weakness in the dollar overseas but rising crude oil prices limited the gains

Clocking some recovery from a five-month low registered the previous session, the rupee appreciated by as much as 26 paise against the US dollar on Tuesday. The rupee opened lower at 70.80 against the greenback, down seven paise compared to the previous close, and slid to as much as 70.83 before reversing direction, and appreciating to as much as 70.47 during the session. Analysts say the recovery in the rupee was in line with emerging market currencies, which rose after signs emerged that Beijing is keen to stem the yuan's slide soothed markets which were unnerved by the Donald Trump administration's labelling of China as a currency manipulator.
Here are 10 things to know:
  1. The mild recovery in the rupee comes a day ahead of the outcome of a bi-monthly policy review by the Reserve Bank of India's Monetary Policy Committee, which began a three-day meeting on Monday.
  2. The rupee gave up most of the gains in afternoon trade during the session. It was last seen trading at 70.68 against the US dollar on Tuesday. It had settled at 70.73 against the dollar on Monday - its biggest single-day fall since August 2013.
  3. Analysts say some pressure is likely to continue in the currency due to the escalating tensions on the US-China trade front. 
  4. "The rupee has depreciated sharply as the trade conflict continues to escalate between the US and China," said Rushabh Maru of brokerage Anand Rathi.
  5. Weakness in the dollar provided some support to the rupee, however, rising crude oil prices kept the upside in check. The dollar index - which measures the greenback against six major peers - edged lower. It was last seen trading down 0.08 per cent at 97.4420.
  6. Brent futures - the global benchmark for crude oil - climbed 58 cents, or 1 per cent, to $60.39 a barrel on Tuesday after earlier dipping to their lowest since January 14 at $59.07 a barrel.
  7. "Focus will now shift to the RBI monetary policy. It is expected to cut repo rate by at least 25 bps but its guidance will be important," Mr Maru said.
  8. The Reserve Bank of India is widely expected to lower the key interest rates on Wednesday. A poll by news agency Reuters last month showed the central bank was set to cut interest rates further.
  9. Gains in the domestic equity markets - which rebounded after plunging more than 1 per cent the previous day - amid buying in financial, auto and metal stocks also supporter the forex market. 
  10. Foreign institutional investors (FIIs) remained net sellers in the capital markets, having pulled out Rs 5,522.09 crore ($798.21 million) from the equities so far this month. In July, they had net sold equities worth Rs. 12,418.73 crore, provisional data from NSDL shows.




Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top