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Wednesday, Nov 20, 2019

Rupee inches up 3 paise to 70.91 versus US dollar

At the interbank foreign exchange, the rupee opened lower at 71.01 then fell to 71.03 against the greenback, thus the domestic unit finally settled for the day at 70.91, higher by just 3 paise over its last close.

business Updated: Oct 23, 2019 19:09 IST
Press Trust of India
Press Trust of India
Mumbai
Trading in emerging market currencies  have been subdued owing to various geopolitical uncertainties.
Trading in emerging market currencies have been subdued owing to various geopolitical uncertainties. (Reuters photo)
         

The Indian rupee rose 3 paise to close at 70.91 against the US dollar on Wednesday amid lack of triggers and geopolitical uncertainties.

Easing crude oil prices propped up the local unit, though fresh capital outflows capped the gains, forex traders said.

Trading in emerging market currencies was subdued after British Prime Minister Boris Johnson lost the crucial Brexit Bill timetable vote.

Besides, markets are also awaiting fresh cues on the potential US-China trade deal, they added.

At the interbank foreign exchange, the rupee opened lower at 71.01 then fell to 71.03 against the greenback. The domestic unit finally settled for the day at 70.91, higher by just 3 paise over its last close.

“Due to mixed global cues, investors are seen on sidelines. Lack of fresh triggers is causing rupee to trade in a range 70.80-71.05 in the last couple of days,” said Rahul Gupta, Head of Currency, Emkay Global Financial Services.

Unless we do not get clarity over the global geopolitical issues like US-China trade deal or Brexit, we will not see much participation in the market, he added.

According to Gaurang Somaiyaa, Forex and Bullion Analyst, Motilal Oswal Financial Services, “rupee failed to move out of the range of 70.70 and 71.30 (spot) following lack of cues on the domestic front. In the next couple of sessions, rupee is expected to take cues more from the global factors than domestic factors and primarily from fresh updates on the Brexit front.” Brent crude futures, the global oil benchmark, fell 0.77 per cent to USD 59.24 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 213.23 crore on Wednesday, as per provisional data.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose by 0.03 per cent to 97.55.

The 10-year government bond yield was at 6.51 per cent. On the domestic markets front, equity indices found firmer ground on Wednesday, led by IT, finance and auto stocks.

After swinging over 330 points in a choppy session, the 30-share BSE Sensex ended 94.99 points, or 0.24 per cent, higher at 39,058.83. The broader NSE Nifty too advanced 15.75 points, or 0.14 per cent, to settle at 11,604.10.