Rupee rises past 72 mark on fall in crude oil prices, fresh foreign fund inflows
The Indian rupee rose past the 72 level to the dollar in afternoon trade for the first time since September 21 on easing of crude oil prices in the international market and fresh foreign fund inflows. The domestic currency hit an intraday high of 71.86 – a fresh two-month high-in the forex market compared to its previous close of 72.31 to the US dollar. Earlier, the Indian currency opened higher by 26 paise at 72.05 per dollar today.
The rupee had gained 36 paise to end at 72.31 against the US dollar on Wednesday as global crude oil prices hovered near one-year lows, easing concerns over expanding current account deficit and inflation. Brent crude, the international benchmark, rose marginally higher to $66.41 per barrel in international oil market.
Brent crude has fallen nearly 23.43% from its four-year high of $86.74 early in October when the markets braced for US sanctions on Iran. The sanctions which came into effect on November 5 and targeted Iran’s oil and gas sector aimed at a complete halt to export of oil to nations such as India and China which received nearly half of Iran’s crude oil and condensate exports in the first half of 2018.
Meanwhile, foreign institutional investors (FIIs) have turned positive for the Indian market this month infusing Rs 4153 crore compared to a record outflow of Rs 38,906 crore in October. On Wednesday too, FIIs bought shares worth Rs 277.38 crore, provisional data showed.
Dealers said the strength in the rupee was also supported by increased selling of dollars by exporters and the American currency’s weakness against some currencies overseas.
A higher opening of the domestic equity market too influenced the rupee, they said. The Sensex opened nearly 100 points higher in trade today.
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