ZCZC
BCN-18
INDIA-RUPEE-USD
Rupee rises 33 paise to 70.50 against USD in early trade
Mumbai, Dec 13, 2019 (BSS/PTI) – The Indian rupee appreciated by 33 paise
to 70.50 against the US dollar in early trade on Friday as gains in domestic
equity market and positive developments on the US-China trade talk front
strengthened investor sentiments.
Forex traders said the news that the US and China are very close to reaching
a trade deal supported the local unit.
At the interbank foreign exchange the rupee opened at 70.54, then gained
further ground and touched a high of 70.50, registering a rise of 33 paise
over its previous close.
On Thursday, rupee had settled for the day at 70.83 against the US dollar.
The domestic unit, however, could not hold on to the gains and was trading at
70.53 against the dollar at 0937 hrs.
President Donald Trump on Thursday tweeted that the United States is “VERY
close” to a trade deal with China, days before new tariffs are due to take
effect.
“Getting VERY close to a BIG DEAL with China. They want it, and so do we!”
Trump tweeted.
Besides, Myron Brilliant, the US Chamber of Commerce’s head of international
affairs, who has been briefed by both the Trump administration and China said
“We’re close to a deal”.
Besides, higher opening in domestic equities supported the local unit.
Domestic bourses opened on a positive note on Friday with benchmark indices
Sensex trading 269.32 points higher at 40,851.03 and Nifty up 72.95 points at
12,044.75.
Market participants, said foreign fund outflows and rising crude prices
weighed on the local currency.
Foreign institutional investors (FIIs) sold shares worth Rs 683.83 crore on
Friday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 0.72 per cent to trade at
USD 64.66 per barrel.
The dollar index, which gauges the greenback’s strength against a basket of
six currencies, fell by 0.64 per cent to 96.77.
The 10-year government bond yield was at 6.83 per cent in morning trade.
On the domestic front, rising food prices pushed the retail inflation in
November to over three-year high of 5.54 per cent, while the industrial
sector output shrank for third month in a row by 3.8 per cent in October,
indicating deepening slowdown in the economy.
BSS/AFP/HR/1245