The rupee rises 55 paise to 70.85 against the USD in early trade
Mumbai, August 14 () The rupee recovered from the minimum of six months and appreciated in 55 countries at 70.85 against the US dollar in the first operations on Wednesday amid a positive opening in the national equity market and the easing of crude oil prices.
On Tuesday, the rupee had collapsed 62 paise to close at a minimum of almost six months of 71.40 against the US dollar in line with the battered shares as global market turmoil and Argentine currency collapse led investors to safe shelters.
In the interbank exchange, the rupee opened at 71.00, then gained momentum and touched a maximum of 70.85, registering a 55-country increase over its previous close of 71.40.
The domestic unit cut some profits and was trading at 70.92 against the dollar at 0953 hours.
Forex traders said the delay in new tariffs on Chinese electronic products as of December 15 also helped investors.
Market participants also said that the positive opening in the national equity market, encouraging macro data and easing crude oil prices, supported national unity, however, outflows of foreign funds weighed in local currency.
Foreign institutional investors (FII) remained net sellers in capital markets, taking Rs. Rs 638.28 million on Tuesday, according to interim exchange data.
Retail inflation based on the consumer price index decreased marginally to 3.15 percent in July due to the decline in fuel and light prices, even as general food prices rose, government data showed Tuesday .
The dollar index, which measures the strength of the dollar against a basket of six currencies, fell 0.03 percent to 97.78.
Brent crude futures, the global benchmark for oil, fell 1.04 percent to trade at USD 60.66 per barrel.
The national stock exchanges opened with a bullish note on Wednesday with Sensex benchmarks trading 108.70 points higher at 37,066.86 and Nifty rising 35.50 points at 10,961.35. The yield on 10-year government bonds was 6.58 percent in the morning trade. DRR DRR