Rupee closes stronger against US dollar as crude oil prices rise over Opec deal

Rupee closes at 68.35 a dollar, up 0.06% from its previous close of 68.39. So far this year, it has fallen 3.18%


At 2pm, the rupee was trading at 68.33 a dollar— up 0.09% from its previous close of 68.39. Photo: Ramesh Pathania/Mint
At 2pm, the rupee was trading at 68.33 a dollar— up 0.09% from its previous close of 68.39. Photo: Ramesh Pathania/Mint

Mumbai: The Indian rupee on Thursday strengthened against the US dollar after international crude oil prices jumped over 10% as the Organization of the Petroleum Exporting Countries (Opec) agreed to cut oil output.

The home currency opened at 68.49 against the US dollar. Rupee closed at 68.35 a dollar, up 0.06% from its previous close of 68.39. So far this year, it has fallen 3.18%.

The Opec agreed on Wednesday for its first oil output reduction since 2008 after Saudi Arabia accepted “a big hit” and dropped a demand that arch-rival Iran also slash its output. The deal also included the group’s first coordinated action with non-Opec member Russia in 15 years, Reuters reported.

India’s benchmark Sensex index closed at 26,559.92 points—down 0.35% or 92.89 points from its previous close. So far this year, it has risen 1.69%.

India’s economy witnessed a marginal acceleration—growing at 7.3% in the second quarter of 2016-17 against 7.1% in the first quarter and 7.6% in the corresponding quarter last year.

Traders are cautious ahead of the US payroll data on Friday, Italian referendum scheduled for Sunday and mid-December US Federal Reserve policy.

The benchmark 10-year government bond yield was trading at 6.215%, compared to Wednesday’s close of 6.247%. Bond yields and prices move in opposite directions.

So far this year, foreign institutional investors (FIIs) have bought $4.21 billion in equities and sold $3.74 billion in debt.

Asian currencies were trading mixed. Philippines peso 0.046%, Indonesian rupiah 0.074%, Taiwan dollar 0.1% and China renminbi 0.036%. However, Singapore dollar was up 0.308%, China offshore 0.248% and Japanese yen rose 0.131%, South Korean won rose 0.13%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 101.14, down 0.35% from its previous close of 101.50.

READ MORE