Rupee rises for sixth day against US dollar: 5 things to know1 min read . Updated: 12 Sep 2019, 06:20 PM IST
- An improvement in global risk sentiment has lifted the rupee against the US dollar
- A sharp fall in oil prices has also supported the rupee
The Indian rupee (INR) jumped sharply today against the US dollar, tracking gains in other Asian currencies. Continuing its recent rebound against the US dollar (USD), the rupee today settled at 71.13 a dollar, as compared to its earlier close of 71.66. Opening at 71.09, the rupee traded in the range of 71.09 to 71.46 a dollar. Last week, the rupee had fallen to year's lowest of 72.40 against the US dollar. The Indian currency has appreciated by 125 paise in the last six trading sessions. Here are five things to know about USD vs INR trade today:
1) Emerging market currencies, including the Indian rupee, have gained as global risk sentiment improved after US and China waived some tariffs as a goodwill gesture before the next round of trade talks. High-level US-China talks on trade issues start next month. China's yuan currency was up 0.27% in offshore trade, as investors hoped for a thaw in U.S.-China trade frictions.
2) Data released today showed India's industrial output rose a better-than-expected 4.3% in July from a year earlier. Retail inflation rate rose to 3.21% in August but it remained below the RBI's 4% medium-term target for a thirteenth consecutive month.
3) The European Central Bank today approved a fresh stimulus package, cutting interest rates and approving a new round of bond purchases to prop up euro zone growth and halt a worrisome drop in inflation expectations.
4) Indian stock markets today gave up gains in the last hour of trade to end lower, with the blue-chip index Sensex snapping four consecutive sessions of gains. Foreign institutional investors (FIIs) bought Indian equities worth ₹266.89 crore (net) on Wednesday. Despite the recent rebound in the rupee, the Indian currency is down about 2% against the US dollar so far this year, weighed down by strong outflows from foreign investors over the last two months.
5) A slide in global oil prices has also boosted the rupee. Oil prices tumbled more than 2% on Wednesday after Bloomberg, citing sources,reported that US President Donald Trump is weighing easing sanctions on Iran, which could boost global crude supply at a time of lingering worries about global energy demand. (With Agency Inputs)