International Development News
Development News Edition

Rupee takes U-turn, jumps 30 paise to 68.08 a dollar

The home currency also regained strength against the euro, British pound and Japanese yen.


Rupee takes U-turn, jumps 30 paise to 68.08 a dollar
Most Asian currencies also recouped most of their losses and were trading mixed. (Image Credit: Twitter)

The beaten-down rupee today staged a good comeback, recuperating by a sharp 30 paise to end at 68.08 against the US currency on heavy bouts of dollar selling by banks and exporters with equities gaining ground.

A collective sigh of relief largely drove currency and financial markets, as sentiment somewhat stabilised slightly in Asia after an escalating trade threats between the worlds two biggest economies rattled investors' confidence overnight.

Besides, easing dollar pressures from importers and currency speculators in the midst of central bank intervention largely took the embattled currency sharply higher.

The home currency also regained strength against the euro, British pound and Japanese yen.

The Indian unit had tumbled to near one-month low of 68.38 on Tuesday on fears of knock-on effects from renewed trade tensions between the US and China.

Most Asian currencies also recouped most of their losses and were trading mixed.

The dollar is holding gains made over the previous session.

On the energy front, crude prices spiked to nearly USD 76 a barrel, recovering from day-earlier losses in Asia largely supported by a drop in US commercial crude inventories and the loss of storage capacity in oil producer Libya.

Brent crude futures, an international benchmark, is trading up at USD 75.05 a barrel in early Asian trade.

Meanwhile, bond markets continued its recovery momentum ahead of the minutes of the Reserve Bank of India's June policy meeting due later in the day.

The committee had, at its last meeting, unanimously raised interest rates by 0.25 per cent, citing rising inflation risks.

The 10-year benchmark bond yield fell sharply to end at 7.83 per cent from 7.86 per cent.

At the interbank foreign exchange (forex) market, the rupee opened with a gap up at 68.10 against 68.38 previously.

Maintaining its strong recovery trend, it touched a fresh session high of 68.03 in mid-afternoon deals before concluding at 68.08, showing a steep rise of 30 paise, or 0.44 per cent.

The RBI, meanwhile, fixed the reference rate for the dollar at 68.0838 and for the euro at 78.8274.

The dollar index, which measures the greenback's value against basket of six major currencies, was up at 94.66.

In the cross currency trade, the rupee edged higher against the pound sterling to finish at 89.72 per pound from 89.96 and rebounded against the euro to settle at 78.74 from 78.97.

It also bounced back against the Japanese yen to close at 61.87 per 100 yens as compared to 62.27 earlier.

Elsewhere, the common currency euro was trading little soft against the US dollar, continuing the downward trend as the European Central Bank (ECB) endorses a dovish outlook for monetary policy.

The British pound continued to trade near its 7-month low ahead of a crucial vote in the UK Parliament about an amendment to give a meaningful vote on Brexit.

In forward market today, premium for dollar displayed weak to steady trend due to lack of market moving factors.

The benchmark six-month forward premium payable in October eased to 103-105 paise from 104-106 paise, while the far-forward April 2019 contract held unchanged at 248-250 paise.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION/BLOG/INTERVIEW

No lessons learnt, Delhi again facing haze and hazardous Air pollution

While the parliamentarians in the Rajya Sabha Upper House were engaged in allegations and counter allegations on Thursday, the pollution was rising outside which soon took the form of a haze....

How to turn the aging population productive, ADB shows the path

Mature and older workers are not necessarily unproductive, and they may perform continuously well in certain types of work, but their productivity in others may naturally decline. In addition, the scarcity of young-to-middle-aged workers co...

How music can help expectant mothers during pregnancy

Music provides pleasant ambience for all but its more important for expectant mothers as besides ensuring pleasant environment for them it also directly and indirectly influences the unborn babies. There are various scientific findings to c...

EdTech: A technical approach to flexible and cost-effective education

Its hight time for the world to go for innovative approaches like e-learning over traditional learning methods that need physical infrastructure, long-term planning, and huge investment. ...

Videos

Latest News

Ex-CIA officer sentenced to 19 years in prison for conspiring to spy for China

A former CIA case officer was sentenced by a federal judge in Virginia on Friday to serve 19 years in prison, after he pleaded guilty in May to conspiring to become a spy for China, federal prosecutors announced.Jerry Chuan Shing Lee, 55, l...

Michael Jackson Hollywood movie reported in the works

Michael Jacksons story is headed for Hollywood from the producer who helped make hit film Bohemian Rhapsody, industry media reported on Friday. Deadline, Variety and the Hollywood Reporter said producer Graham King had secured the rights, i...

UP: SP leader seen smoking inside hospital premises in Moradabad

Samajwadi Party SP leader Haji Ikram Qureshi was on Friday seen smoking inside the premises of a hospital in Moradabad, where he had gone to distribute fruits among the patients on the occasion of party patriarch Mulayam Singh Yadavs birthd...

Science News Roundup: Study reveals music's universal patterns across societies worldwide; Egypt to send its first communication satellite into orbit on Friday

Following is a summary of current science news briefs. Study reveals musics universal patterns across societies worldwideFrom love songs to dance tunes to lullabies, music made in disparate cultures worldwide displays certain universal patt...

Give Feedback