The rupee closed higher by 27 paise against the dollar on Wednesday, rebounding from a nine-month low registered the previous day. The rupee opened at 72.20 and touched an intraday high of 71.96 against the American currency before settling at 72.12. Forex traders said the rupee gained following weakness in the US dollar. Gains in domestic equity market also supported the rupee and helped it recoup some of its losses of the previous session. The rupee on Tuesday had slumped by 97 paise to 72.39 against the dollar.
Here are five things to know about rupee's movement today:
1. The dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.35 per cent to 98.65 weighed down by weak factory activity in the US, which shrank in August for the first time since August 2016.
2. The domestic equity indices rebounded after falling the most since July 8 in the previous session led by banking, metal and financial services shares. The S&P BSE Sensex ended 162 points higher at 36,725 and the Nifty 50 index climbed 47 points to close at 10,845.
3. Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs. 1738.49 crore on Wednesday, according to provisional exchange data.
4. Brent crude futures, the global oil benchmark, rose 1.17 per cent to $58.94 per barrel. Meanwhile, the 10-year government bond yield was at 6.55 per cent on Wednesday.
5. The rupee has witnessed a significant decline since the start of this year amid sustained foreign fund outflows and weak macro economic environment.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
