Rupee Strengthens Counter To Dollar In Forex Trading
On Thursday, the Indian rupee opened on a positive note. Moreover, it soared five paise to 71.22 versus the U.S. dollar in early trade on the forex exchange market.
Meanwhile, crude oil prices had pondered on the investor community after a stable rise.
Last Tuesday, the rupee had ended at 71.27 against the dollar.
On account of Christmas day, the FX market closed on Wednesday.
In a statement, forex traders stated that the growth in crude oil prices had subdued the opening of domestic equities, and foreign fund expenditures weighed on the local unit.
The Brent crude futures, as well as the global oil benchmark, increased 0.42 percent to USD 67.48 per barrel.
Meanwhile, Foreign institutional investors (FIIs) persisted net sellers in the capital markets. It was after as they sold shares valuing ₹114.38 crores on Tuesday, as per provisional data.
On the flip side, domestic bourses began on a muted note. The benchmark indices Sensex trading 14.29 points were set down at 41,446.97, and Nifty reduced by 2.85 points at 12,211.70.
The dollar index gauging the greenback’s strong point against a basket of six currencies was steady at 97.62 in the forex trading.
In addition, the 10-year government bond yield was at 6.59 in morning trade.
Additional Forex Trading Movements
Elsewhere, the dollar inched up slightly in contrast to the yen on the same day.
Meanwhile, risk-sensitive currencies kept firm on prospects of easing trade conflicts between the United States and China also on a pickup in global growth.
Earlier this month, the dollar increased by 0.2% at 109.53 yen. There was also a striking distance of a six-month high at 109.73 versus the yen.
The euro barely moved at $1.10905. On the other side, the Australian dollar was also steady at $0.6927.
It was a shade lower than its four-month peak of $0.6939 marked earlier this month
Meanwhile, the kiwi traded at $0.6648, near its sharpest level in five months.
Global currency markets lingered in the holiday mood at the back of Christmas Day on Wednesday. In addition, quite a few centers are still shut down for Boxing Day on Thursday.
However, traders have taken a decisive lead after Washington and Beijing reached an interim agreement on trade earlier this month. They will be anticipating to persist on underpinning risk assets.
In currency markets, stronger risk appetite generally transforms into more selling in safe-haven currencies, such as the yen, against currencies leveraged more to development.
A chief manager of forex at Mitsubishi UFJ Trust Bank, Koichi Kobayashi, said, “While global share prices have been rallying, the currency market has seen limited reaction so far, but I think currencies will have a catch-up to do.”
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!