Rupee Gains By 30 Paise Against Dollar: 10 Things To Know

NDTV Profit Team

28 Dec 2018, 12:43 PM IST

Rupee Vs Dollar: Rupee has declined about 1% so far this month.

The dollar on Friday fell against major global currencies as investors turned their focus to safe-haven currencies amid renewed worries over US-China trade tensions and global economic growth. The dollar index, which measures the American currency against six major peers, was last seen down 0.23 per cent at 96.35 during Friday's session.
Overnight losses in crude supported early gains in the rupee, say analysts.
"The rupee has appreciated smartly in recent sessions on account of sharp decline in the crude oil prices in the international market," said Rushabh Maru, research analyst, Anand Rathi Shares and Stock Brokers.
Crude oil declined 4.24 per cent to $52.16 per barrel on Thursday after reports of an increase in US inventories. The oil prices, however, recovered losses on Friday to trade 2.26 per cent higher at $53.34 a barrel.
"This bodes well for the rupee as weak crude oil prices may lead to further decline in inflation and narrow current account deficit," Mr Maru added.
Analysts also see concerns about slowdown in global economic growth, US-China trade and tightening of monetary policy to keep the global markets jittery.
"Eventually, the rupee may swiftly move towards 71-72 levels and stabilize around those levels in coming sessions," said Mr Maru of Anand Rathi Shares and Stock Brokers.
On Thursday, the government released fiscal deficit data for the month of April-November. The fiscal deficit stood at Rs. 7.17 lakh crore, or 114.8 per cent of the budgeted target for the fiscal year that ends in March.
"The markets do not seem to be pricing in fiscal stress at this point due to aggressive open market operation (OMO) purchases by the Reserve Bank of India (RBI)," forex advisory firm IFA Global said in a note. "The near term forwards could be lower on account of year end dollar shortage."
The rupee is set to finish the calendar year with a depreciation of around 10 per cent against the dollar. It has declined about 1 per cent so far this month.

(With inputs from agencies)