INSUBCONTINENT EXCLUSIVE:
Rising crude oil prices and foreign fund outflows however limited the gains in the rupee.
The rupee
climbed by 54 paise against the US dollar to settle at 71.48 on Tuesday, recovering from a more than nine-month closing low registered in
With today's jump, the rupee posted its biggest single-day gain in more than five months against the dollar
The gain in the home unit came after the Reserve Bank of India decided to payout Rs 1.76 lakh crore of surplus and reserves from its balance
The rupee opened higher at 71.72 against the greenback, and moved in a range of 71.45-71.87 during the session before shutting shop at 71.48
Analysts say easing of concerns on the US-China trade front and gains in the domestic equity markets supported the rupee
The RBI's payout comes at a time the government strives to tackle a nearly five-year low economic growth with lakhs of
estimated job cuts across sectors, and defend its ambitious target of containing fiscal deficit at 3.3 per cent of the GDP
Economists say the payout will likely help the government meet its tax revenue shortfall and fund a higher expenditure.US President Donald
Trump said on Monday that his negotiators had received two "very good calls" from China and it was a sign that China is serious about
reaching a deal and that talks would begin soon."I think we're going to have a deal, because now we're dealing on proper terms
They understand and we understand," Mr Trump said.Weakness in the dollar overseas also supported the rupee, according to analysts
The dollar index - which gauges the greenback's strength against six peers, was last seen 0.08 per cent lower."72.20 is an important
resistance and till the time it is trading below 72.30 the trend is bearish for the rupee-dollar pair," said Rahul Gupta, currency research
head, Emkay Global Financial Services."The rupee rose sharply higher against the US dollar on hope that the higher-than-estimated surplus
transfer by the RBI to the government likely to ease twin deficit concerns," said forex advisory firm IFA Global
Brent crude futures - the global benchmark for crude oil - were last seen trading 1.2 per cent higher at $59.39 a barrel, after falling 1
per cent in the previous session dropping for a third day in a row.Foreign institutional investors (FIIs) remained net sellers in the
capital market, pulling out a net Rs 923.94 crore on Tuesday, provisional data from the NSE showed."However, the development on US-China
trade war and performance of emerging market currencies will track the movement in rupee," Mr Gupta added.On Monday, the rupee had ended
below the 72 mark against the US currency for the first time since November 14, amid weakness in Asian peers.Get Breaking news, live
coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
