Rupee Closes Higher, Breaks 4-Day Losing Streak

Snapping a four-session downturn, the rupee appreciated by 23 paise to end 71.11 against the US dollar on Wednesday amid easing oil prices and a firm greenback. A positive trend in the global equity markets, which rose on optimism surrounding the ongoing US-China trade talks, also supported the rupee, analysts said. At the Interbank Foreign Exchange (forex) market, the domestic unit opened strong at 71.29 but surrendered the gains to slip to a low of 71.34. However, it clawed back lost ground and finally ended at 71.11, up 23 paise.

The rupee had closed at 71.34 versus the greenback on Monday. Money markets were closed on Tuesday on account of Chhatrapati Shivaji Jayanti.    

With the RBI's surplus transfer to the government, the total dividend payout by the central bank to the government in FY19 stands at Rs 68,000 crore, said VK Sharma, head PCG and capital markets strategy, HDFC Securities.

"Lower fiscal deficit would provide floor to the Indian currency," he added.

Meanwhile, foreign institutional investors (FIIs) pumped in Rs 713.47 crore on a net basis in capital markets on Wednesday. Brent crude futures, the global oil benchmark, was trading 0.56 per cent lower at $66.08 per barrel.    

The dollar index, which gauges the greenback's strength against a basket of six currencies, inched up 0.04 per cent to 96.56.

Reversing a nine-session falling streak, the BSE Sensex rebounded 404 points or 1.14 per cent on Wednesday as investors snapped up recently hammered stocks amid optimism in global markets over the US-China trade talks. The broader NSE Nifty soared 131.10 points or 1.24 per cent. 

US President Donald Trump Tuesday said the negotiations were going very well, but refrained from committing any extension of the March 1 deadline to arrive at an understanding.    

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.1773 and for rupee/euro at 80.7075. The reference rate for rupee/British pound was fixed at 92.9272 and for rupee/100 Japanese yen at 64.21.