Rupee Strengthens Against US Dollar In Opening Trade Today

The Indian rupee strengthened further by 10 paise to open at 68.47 against US dollar in opening trade on Wednesday, reported Press Trust of India (PTI). The rise in Indian rupee at the Interbank Foreign Exchange is due to increased selling of the US currency by exporters and banks amid weakness in the greenback against other currencies overseas. According to forex dealers, selling of the American currency by exporters and banks and a higher opening in the domestic equity market influenced the rupee uptrend today in the early trade.

"Rupee movement presently is very closely linked to the expectations on the Oil prices. With the central bank actively intervening, as of now, we expect the Rupee to trade between 68.50 and 69.20", said Salil Datar, CEO and Executive Director, Essel Finance VKC Forex.

Key things to know about Indian rupee's movement:

1.    On Tuesday, rupee made a strong comeback against the US dollar. The Indian currency gained 23 paise to end at 68.57 on fresh dollar selling by exporters and corporates.

2.    The rupee had tumbled below 69-mark for the first time ever on June 28 and hit a life-time low of 69.10.

3.    Meanwhile, domestic equity indices on Wednesday opened on a flat note. The S&P BSE Sensex edged up by 7 points to open at 35,385.52. The NSE's Nifty 50 rose marginally higher by 15 points to open at 10,715. 

4.    Foreign portfolio investors (FPIs) sold shares worth a net Rs 1,043.31 crore, while domestic institutional investors (DIIs) bought shares worth a net Rs 278.84 crore on Tuesday, as per provisional data quoted by PTI.

5.    On the macro front, growth of eight infrastructure industries dropped to a ten-month low of 3.6 per cent in May due to a decline in production of crude oil and natural gas. (With Agencies inputs)