Rupee Gets A Lift-Off On Falling Oil Prices, Fund Flows: 10 Points

NDTV Profit Team

15 Nov 2018, 12:22 PM IST

INR Vs USD: On Wednesday, the Indian rupee ended at 72.31 against the dollar.

The strength in the rupee was also supported by increased selling of dollars by exporters, dealers were quoted as saying in the PTI report.
The dollar index, which measures the greenback against a basket of six major currencies, traded at 96.84, off a 16-month high hit on Monday, reported news agency Reuters.
A higher opening of the domestic equity market too influenced the rupee, they said. At 10:50 am, BSE benchmark index Sensex traded at 35,181.86, up 39.87 points or 0.11 per cent and the NSE index Nifty50 was at 10,588.30, with a gain of 12 points or 0.11 per cent.
Besides, the central bank had said on Tuesday that it will be infusing liquidity worth Rs 12,000 crore on Thursday by buying bonds through open market operations.
Oil prices fell, pressured by rising supply going into a market in which consumption is expected to slow down amid a glum economic outlook. Front-month Brent crude oil futures were trading at $65.90 per barrel at 0254 GMT or 8:24 am IST, down 22 cents, or 0.3 per cent, from their last close, reported Reuters. US West Texas Intermediate (WTI) crude futures were at $55.95, down 30 cents, or 0.5 per cent.
India imports more than 80 per cent of its crude oil requirements. Easing of crude oil prices has offset concerns on current account deficit, fiscal deficit and inflation, thus lifting the rupee.
Retail inflation in October fell to a 13-month low of 3.31 per cent, government data showed earlier. This was the third straight month in which it stayed below the central bank's medium-term target of 4 per cent.
Earlier, the current account deficit widened to $15.8 billion or 2.4 per cent of gross domestic product in April-June from $15.0 billion or 2.5 per cent a year ago.
During September, trade deficit was estimated at $13.98 billion - the lowest in five months .
The rupee has fallen to multiple lows this year, even breaching the 74 per dollar mark earlier. (With agencies inputs)