Rupee Opens Stronger, Rises 6 Paise To 86.06 Vs USD
The rupee gained against the US dollar as global trade deal hopes lifted investor sentiment and the greenback weakened. Analysts watch if this rebound can sustain amid global and domestic cues.
Mumbai, July 18 (PTI) The rupee appreciated 6 paise to 86.06 against the US dollar in early trade on Friday on the back of a weaker greenback and a marginal drop in global crude oil prices.
However, steady foreign fund outflows capped sharp gains for the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 85.99 before dropping to 86.06 against the US dollar, up 6 paise from its previous close. The rupee declined 20 paise to settle at 86.12 against the US dollar on Thursday.
Thursday's buying of US dollar was mainly on account of the outflow of an IPO subscribed 63 times, the allotment of which was done Thursday itself. Today it will be up to the Reserve Bank whether it wants to allow further weakening or keep it on the already defined range.
We await for further developments on the trade deal, which still is to be finalised and signed between India and the US," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Negotiations between India and the US are underway to iron out pending issues for a trade deal, the Ministry of External Affairs (MEA) said on Thursday. The comments came a day after US President Donald Trump said that Washington is very close to the trade pact with India.
Brent crude, the global oil benchmark, was down by 0.14 per cent to USD 69.42 per barrel in futures trade.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.29 per cent to 98.45.
On the domestic equity market front, the Sensex declined 185.67 points to 82,073.57 in early trade, while the Nifty was down 45.4 points to 25,066.05.
Foreign institutional investors (FIIs) sold equities worth Rs 3,694.31 crore on a net basis on Thursday, according to exchange data.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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