The rupee rises 12 paise to a maximum of 1 month of 70.92 against the US dollar
Mumbai, December 10 () The rupee rose 12 countries to close to a maximum of more than a month of 70.92 against the US dollar on Tuesday amid the decline in crude oil prices and the weakening of the dollar against The main world currencies.
Forex traders said the Indian rupee gained ground thanks to stable oil prices and a weaker dollar index. However, silenced domestic stock markets weighed on local unity.
In the interbank currency market, the rupee opened at 70.98 against the US dollar.
During the day, the national unit fluctuated between a maximum of 70.85 and a minimum of 71.04 and finally ended the day at 70.92 against the US dollar, the highest closing level since November 5 when the unit was set at 70.69.
On Monday, the rupee had settled at 71.04 against the US currency.
The rupee continued to extend profits despite the fall in national stocks, but mainly due to the weak dollar against its major crosses, said Gaurang Somaiyaa, currency and bullion analyst at Motilal Oswal Financial Services Private Ltd.
Somaiyaa also said that it will now focus on inflation and the number of industrial production and weaker than expected data could curb currency gains.
We expect the USDINR (Spot) pair to find support near the 70.80 levels and on the higher side the resistance is at the 71.40 level, he said.
Forex traders said that the easing of crude oil prices and the weakness of the US dollar against other currencies abroad supported the rupee.
Asian currencies are mixed as investors seem reluctant to place bets before the deadline of December 15 for the United States to place more tariffs in China. The ICE dollar index is close to a minimum of one month while traders expect a series of risk events this week led by a Federal Reserve policy meeting on Wednesday, said VK Sharma, director of PCG and market strategy of capital, HDFC Securities.
The dollar index, which measures the strength of the dollar against a basket of six currencies, fell 0.13 percent to 97.51.
Meanwhile, foreign investors sold shares worth Rs 366.79 rupees on Tuesday, according to provisional exchange data.
The benchmark rates were spirally dragged by the widespread sale of banking, energy and IT stocks, as investors posted gains at higher levels amid mediocre macro and global signals.
The BSE Sensex of 30 actions, after a positive opening, lost momentum throughout the session. Finally it closed 247.55 points or 0.61 percent less at 40,239.88.
The 10-year government bond yield was 6.71 percent on Tuesday.
Brent crude, the global benchmark for oil, fell 0.51 percent to USD 63.92 per barrel in futures trading. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.1620 and for the rupee/euro at 78.7189. The reference rate for the rupee/British pound was set at 93.7455 and for the rupee/100 Japanese yen at 65.54. DRR MR MR MR