Rupee Closes At 3-Month High, Rises 77 Paise Against Dollar: 10 Points

At the Interbank forex market, the rupee opened on a firm footing at 70.15 against the dollar. It then breached the crucial 70 per dollar mark and rallied to the day's high of 69.78 following dollar selling by exporters. The dollar weakened against some currencies overseas after US Federal Reserve Chairman Jerome Powell said that the central bank's benchmark interest rate is likely near a "neutral level". "The rupee remains firm on account of sharp decline in the crude oil prices in the international market. This is positive for India as decline in crude oil prices may push inflation and current account deficit lower," said Rushabh Maru, Research Analyst , Anand Rathi Shares and Stock Brokers. Brent crude futures fell 64 cents on the day to $58.12 a barrel, off an earlier session high of $59.51, while US crude futures dropped below $50 for the first time in over a year. "There is lot of uncertainty in the global financial markets. Domestic equities are quite volatile too. Hence we may see importers rushing to cover their exposure for 2-3 months. Near term range for the rupee is 69.50 to 71.00 levels", added Mr Maru. Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management, said, "The rupee appreciated on account of renewed interest by FIIs in India. After a steep 15 per cent fall in the rupee earlier this year, the rupee has bounced back 6 per cent. After pulling out $5 billion cumulatively in September and October, FIIs have bought Indian equities worth $558 million in November." The benchmark 10-year bond yield was at 7.60 per cent by 0340 GMT or 9:10 am IST, down 4 basis points on the day and at its lowest level since May 8. The domestic stock markets posted their highest close in two months by rising more than 1 per cent on Thursday. Bombay Stock Exchange (BSE) benchmark index Sensex settled at 36,170.41, up 453.46 points or 1.27 per cent from the previous close, and the Nifty50 index of the National Stock Exchange (NSE) rose 129.85 points or 1.21 per cent to close at 10,858.70. Meanwhile, on net basis, foreign funds bought shares worth Rs 823.47 crore, while DIIs purchased share to the tune of Rs 973.31 crore on Thursday, provisional data showed. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.9159. (With inputs from agencies)

Rupee Closes At 3-Month High, Rises 77 Paise Against Dollar: 10 Points

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