The rupee recovered from a near 18-month low by rising 12 paise to 68.30 against the dollar in opening trade today at the forex market on fresh selling of the US currency by exporters and banks.

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The minutes from the US Federal Reserve's meeting yesterday appeared to have reassured investors that the central bank will not be too aggressive with raising interest rates, forex dealers said.

Besides selling of the American currency by exporters and banks, weakness in the dollar against some other currencies overseas propped the rupee, the said.

Further, a higher opening in the domestic equity market too influenced the rupee uptrend, they added.

Yesterday, the rupee had lost 38 paise to hit a near 18-month low of 68.42 against the US dollar following relentless capital outflows amid concerns over macro conditions and surging crude oil prices.

Meanwhile, the benchmark BSE Sensex rose 119.56 points, or 0.34 per cent, to 34,464.47 in early trade today. 

After taking a breather for a day, the markets fell steeply on Wednesday as rupee hit 18-month low and weak earnings weighed on sentiment.

Though the benchmark Sensex opened in green, it dropped 306.33 points, or -0.88%, to close at 34344.91. It gyrated between 34302.89 and 34668.47 in a see-saw trade. This is its weakest closing since April 19, when the gauge had finished at 34,427.29. The index had lost 1199.03 points so far in last seven days.

The broader Nifty fell below 10500 mark and remained in red for the entire day. The 50-share index opened at 10521.10 and ended at 10430.35, plunging 106.35 points, or 1.01%.

Stocks of the oil companies too dragged the indices as also the global market movement that was subdued after the US President Donald Trump tempered optimism over the progress made so far in trade talks with China. The US stocks closed lower overnight as uncertainty over trade policy and other geopolitical issues hit sentiment.

(With inputs from PTI)