Rupee recovers 4 paise on weak dollar, falling crude

Team Udayavani, Dec 24, 2018, 6:06 PM IST

Mumbai: The rupee on Monday recovered by 4 paise to close at 70.14 against the US currency, aided by weak crude oil prices and the dollar’s losses in global markets due to political uncertainty in the US.

Crude oil prices remained below the USD 55 per barrel mark, strengthening the rupee sentiment, a forex dealer said.

The dollar was weak against major currencies in global markets which supported the local currency, the dealer said.

The dollar index, which measures the US currency’s strength against a basket of six major global currencies, was down at 96.27 amid growth worries and political uncertainty in the US due to the shutdown.

The rupee opened strong by 8 paise against the US dollar at 70.10 in early trade on dollar selling by exporters and banks.

It gained 30 paise to touch a day’s high of 69.88 per dollar in late morning trade as the dollar remained weak in global markets.

The domestic currency, however, trimmed its early gains due to month-end dollar demand and losses in equity markets in the last hour of the trade.

Foreign investors pulled out Rs 577 crore from capital markets Monday, provisional exchange data showed.

The rupee finally ended up by 4 paise or 0.06 per cent at 70.14 per dollar.

Stock markets fell for a third session due to heavy selling in realty, consumer durables, metal and auto counters amid weak global cues. The benchmark BSE Sensex dropped 0.76 per cent while the broader NSE Nifty declined 0.84 per cent to settle below the 10,700 level.

Meanwhile, the Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 70.1757 and for rupee/euro at 79.8824. The reference rate for rupee/British pound was fixed at 88.8710 and for rupee/100 Japanese yen at 63.16.