Rupee Jumps Sharply Against US Dollar Today: 10 Things To Know

The rupee is back at 67 level against the US dollar, after staging a big recovery today. The rupee jumped to 67.71 per US dollar intra-day, as a pause in the crude price rally boosted the sentiment for the rupee. A rally in domestic equity market also aided the recovery in the rupee. The rupee had closed at 68.34 on Thursday. Earlier this week, on Wednesday, it fell to a 18-month low of 68.42 against the US dollar, not far from its all-time lows of 68.87 vs US dollar, recorded in November 2016. Despite the two-day pullback, analysts expect the rupee to weaken further from here.

Here are 10 things to know about dollar vs rupee trade today

1) The rupee traded in the range of 68.34 to 67.71 against the US dollar today.

2) The pullback in crude oil prices helped improve sentiment for the rupee, says forex advisory firm IFA Global.

3) Global oil prices fell below $78 a barrel today as OPEC and Russia considered easing supply curbs to offset disruptions in Venezuela and an expected drop in Iranian exports.

4) Tight supply because of OPEC-led cuts, a drop in Venezuelan production and prospects of renewed sanctions on Iran had pushed crude oil prices above $80 mark last week.

5) Concerns over fiscal deficit and current account deficit amid rising global crude oil prices have been weighing on the rupee.

6) Every $10 per barrel rise in the price could impact India's fiscal balance by 0.1 per cent and current account balance by 0.4 per cent of GDP, according to Nomura's estimates.

7) Globally, the dollar, against a basket of six major currencies, strengthened today, after losing ground on Thursday.

8) The 10-year US Treasuries yield dipped to as low as 2.955 per cent on Thursday before it ticked back to 2.992 per cent today. But it is still off a seven-year high of 3.128 percent hit a week ago.

9) The rupee was boosted by a rally in domestic markets, with Sensex rising over 250 points today. The Nifty regained 10,600 level.

10) The rupee settled higher by 58 paise to 67.76 today as compared to Thursday's close of  68.34 against the US dollar.