Rupee trims early gains, trades 8 paise higher against US dollar
The rupee benefitted after the greenback came under pressure following US President Donald Trump’s comments, sparking fears of a global trade war.Updated: Mar 05, 2018 14:06 IST
The rupee was trading at 65.09 against the US dollar at 2 pm on Monday, 8 paise or 0.12% higher. The home currency had firmed up to 19 paise to 64.98 against the US dollar in opening trade, after the greenback came under pressure as US President Donald Trump’s comments raised concerns of a global trade war.
The rupee, however, trimmed its initial gains to trade 8 paise higher against the US dollar in afternoon deals.
Trump on Friday said trade wars were good and easy to win. His plan to put tariffs on steel and aluminium imports triggered negative sentiments across overseas markets.
Forex dealers said weakness in the dollar against some other currencies overseas and foreign capital inflows in the domestic equity markets supported the rupee.
According to provisional exchange data, foreign portfolio investors (FPIs) bought shares worth a net Rs 241.85 crore on net basis on Thursday.
On Thursday, the rupee failed to benefit from highly bullish macroeconomic trends and ended virtually stable at 65.17 against the US dollar even as India regained title of world’s fastest-growing major economy amid imminent Fed rate hike fears.