Mumbai, Oct 16 The rupee appreciated 20 paise to 94.79 against the US dollar in early trade on Friday on softening of the American currency and the positive impact of the RBI’ structural forex interventions.
Lower US treasury yields also supported the domestic currency.
However, elevated crude oil prices and decline in equity markets restricted the rupee’s sharp gains.
At the interbank foreign exchange market, the rupee opened at 94.75, then touched 94.79, registering a gain of 20 paise over its previous close.
On Thursday, the rupee had appreciated 18 paise to close at 94.99 against the US dollar.
” Decline in dollar index and softening of US treasury yields also supported the rupee. However, a surge in crude oil prices capped sharp gains. On the data front, US PPI (Producer Price Index) was hotter than expected while retail sales topped forecast. Weekly unemployment claims were in line with expectations,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.54 per cent at 102.
Brent crude, the global oil benchmark, was trading lower by 0.54 per cent at USD 105.35 per barrel in futures trade.
On the domestic equity market front, Sensex declined 113 points to 74,187 in early trade, while Nifty dipped 27.20 points to 22,967.15.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,285.37 crore on a net basis on Thursday, according to exchange data. .
(PTI News)
