On Thursday, The rupee opened 6 paise higher at 71.05 against the dollar as the American currency saw some selling by banks and exporters. Amid a reversal in foreign fund outflows even as oil prices hardened. At the Interbank Foreign Exchange (forex) market, the domestic unit opened slightly higher at 71.06 and built on the gains to reach 71.02. on Wednesday Snapping a four-session downturn, the local currency appreciated by 23 paise to end 71.11 against the dollar. Foreign institutional investors (FIIs), who had been heavy sellers over the past few sessions, net bought equities worth Rs 713.47 crore Wednesday, provisional data showed.
also read Sensex and Nifty started at a higher note in early trade
The rupee climbed in the latter half of the session yesterday primarily on the back of gains in domestic equities as FIIs pumped in funds after staying on the sell side for the last few sessions. However, firm global crude oil prices, a stronger dollar and widening trade deficit are expected to keep the rupee under pressure.
Motilal Oswal Financial Services said “On the domestic front, no major economic data are expected to be released, but a stronger dollar could keep the rupee weighed down. Today, USD-INR pair is expected to quote in the range of 70.70 and 71.50,”. Brent crude futures, the global oil benchmark, was trading 0.24 per cent higher at USD 67.24 per barrel. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.07 per cent to 96.52. Meanwhile, the benchmark BSE Sensex climbed 19.16 points, or 0.05 per cent, to trade at 35,775.42 in early trade Thursday.
