Mumbai:The rupee opened higher, helped by lower oil prices and expectations that local shares could follow the lead of Asian stocks, but political uncertainty may curb further gains.
At 9:06 a.m. the partially convertible rupee was at 43.11/12 per dollar, higher than Tuesday’s close of 43.26/27, hitting a 15-month low of 43.50 last week.
Asian stocks bounced on Wednesday, after oil fell sharply and the head of the Federal Reserve said efforts to help Wall Street banks may continue for longer, easing fears inflation and the credit crisis could worsen a global slowdown.
Oil fell more than $5 on Tuesday, pushing losses so far this week to about $10. The communist parties that have provided India’s government with a parliamentary majority for four years said on Tuesday they were withdrawing their support to protest a civilian nuclear energy deal with the United States.