Rupee extends gains, back to 69-levels against Dollar: 5 things to know
Mumbai, Nov 29: The Indian rupee extended its morning gains as it is trading at USD 69.96 per dollar mark. This is the first time the rupee has strengthened past 70 a dollar mark in three months.
Gains in the rupee came amid sustained selling of the American currency by exporters and easing crude oil prices.
At the Interbank Foreign Exchange, the rupee opened on a higher note at 70.15 and then gathered further momentum and touched an intra-day high of 69.88, a level last seen on August 27.
Dollar index, which compares the movement of dollar against a basket of six major world currencies, fell edged 0.09 per cent lower at 96.58. Most Asian currencies edged higher against the dollar in the morning trade.
The domestic currency, which has been among the worst performing Asian currency this year, has gained over 5 per cent so far this month. The domestic currency had strengthened 17 paise to 70.62 on Wednesday.
5 THINGS TO KNOW
- The US dollar weakened against other currencies overseas, after US Federal Reserve Chairman Jerome Powell comments that the central bank's benchmark interest rate is likely to be near a neutral level.
- The dollar dipped 0.35 percent to 113.26 yen after being knocked down from a two-week high above 114.00 scaled overnight, reported news agency Reuters.
- Strong foreign fund inflows and easing crude prices also supported the rupee.
- On Wednesday, foreign portfolio investors (FPIs) bought shares worth a net of Rs. 961.26 crore, showed provisional data from bourses.
- The sharp fall in crude prices has eased concerns over India's current as well as fiscal deficit. When petrol and diesel prices had touched a record high of Rs 84 per litre in Delhi, the government had to cut excise duty to cool prices.