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Easing crude prices push up rupee against US dollar


Devdiscourse News Desk mumbai Last Updated at 13-11-2018 18:16:55 IST India
Easing crude prices push up rupee against US dollar
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The rupee Tuesday recovered 22 paise to close at 72.67 against the US currency on easing crude oil prices and better-than-expected macroeconomic data.

Crude oil prices fell below the USD 70 per barrel mark, easing concerns over expanding current account deficit and inflation which have a bearing on rupee sentiment.

Positive macro data which showed retail inflation dropping to a 13-month low in October also bolstered the market sentiment.

Besides, fund inflows by foreign investors and the US dollar's weakness against some currencies overseas also supported the domestic unit, dealers said.

Oil prices retreated Tuesday after US President Donald Trump flayed Saudi Arabia's call for production cuts and pressed oil cartel OPEC for lower prices based on supply. Weak oil demand outlook by OPEC and worries about oversupply and US-China trade war also weighed on oil prices.

Brent crude fell 70 cents to USD 69.42 per barrel while West Texas Intermediate dropped 74 cents to USD 59.19 per barrel.

At the Interbank forex market, the rupee opened with strength at 72.81 and advanced to a high of 72.51 in day trade.

The domestic currency finally settled at 72.67, showing a gain of 22 paise or 0.30 per cent over the last close.

Retail inflation fell to a one-year low of 3.31 per cent in October, raising hopes of a pause in RBI's interest rate hikes.

Foreign institutional investors (FIis) bought shares worth Rs 832.15 crore Monday, provisional data showed.

Stock markets also rebounded from Monday's losses, with the BSE Sensex gaining close to 1 per cent.

(With inputs from agencies.)


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