The rupee ends flat at 70.94 against the dollar despite the rebound in Steller's actions
MUMBAI: The rupee recovered from the low levels of the day to close at 70.94 against the US dollar on Monday helped by the entry of foreign funds in stocks and the reduction of world crude oil prices.
The national currency opened down and fell to a minimum of 71.03 later due to geopolitical concerns in West Asia and gains in the US currency against major world rivals.
A strong rebound in equities amid strong purchases by foreign investors helped rupee Stop losses and touch the maximum of one day of 70.87.
In the interbank currency exchange, the national unit opened weakly and moved between a maximum of 70.87 and a minimum of 71.03 during the day.
The rupee finally closed flat at 70.94 against the US dollar despite a steller closing in equity markets.
According to provisional data, foreign investors pumped Rs 2,684 crore in net terms in capital markets on Monday.
Investors were concerned about renewed trade concerns after the United States said it did not expect any trade agreement with China before 2020, distributors said.
The president of the United States, Donald Trump, said he was not seeking a partial agreement and that he expected a full agreement. The comments struck optimism in the talks between the two sides.
The dollar index, which measures the strength of the dollar against a basket of six currencies, rose 0.19 percent to 98.70 as the euro and sterling declined due to growth concerns.
Meanwhile, the Brent Futures crude benchmark index on Friday was trading at 0.76 percent lower at $ 63.79 per barrel in hopes of resuming Saudi Arabia's oil production as soon as next week.
The yield on 10-year government bonds was 6.75 percent.
The BSE sensex of 30 shares skyrocketed more than 1,426 points in the daily trade before closing higher at 1,075.41 points or 2.8 percent at 39,090.03, a level not seen since July 17.
The broader NSE NSE increased 326 points or 2.89 percent to end in two months of 11,600.20 with 32 of its components closing with gains.