Indian Rupee Staged a Recovery from 1 Month Low

Fresh selling of the American currency by banks and exporters impacted the early session of trade today.

Indian rupee staged a recovery from its near 1-month low to trade 32 paise higher at 68.06 against the US currency in early session on Wednesday.

Fresh selling of the greenback by banks and exporters supported the Indian rupee but US dollar’s strength against other currencies overseas capped the gains, said forex dealers.

Investor sentiment also turned positive following higher opening of the domestic equity market.

5 things to know about forex markets today:

1. Overseas, mixed trend at other Asian markets influenced trading sentiments today.

2. However, the rupee plummeted 39 paise to hit a near one-month low of 68.38 against the US dollar on Tuesday. This was the lowest closing for the rupee since May 23.

3. The escalating trade threats between the world’s two biggest economies affected forex market on Tuesday. Increasing prospects for a full-blown US-China trade war triggered a risk-off atmosphere in many global currency markets after US President Donald Trump ordered to impose another round of tariffs on more Chinese goods, prompting China to retaliate.

4.Domestic institutional investors (DIIs) bought shares worth a net Rs. 653.686 crore while foreign portfolio investors (FPIs) sold equities to the tune of Rs. 1,324.92 crore on Tuesday, as per provisional data.

5.Meanwhile, the 30-share BSE index was trading higher by 130.41 points, or 0.37 per cent, to 35,417.15 in early trade today. The gauge had lost 335.40 points in the previous two sessions, tracking a sell-off across global markets after the US and China reignited their trade dispute. Nifty50 edged up by 24 points to trade at 10,734 level in the opening trade.

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