Rupee Opens Stronger By 8 Paise Against US Dollar

The rupee opened stronger against the US Dollar in Wednesday's session. The Indian unit reversed losses from previous session despite a rise in the dollar index and crude oil prices.

The rupee opened 8 paise higher at 85.68 against dollar. It snapped an eight-day winning streak on Tuesday to settle at 85.76 a dollar.

"Today is the expiry day for March contracts and some buying possibly could emerge from the oversold positioning of RBI to square up these positions. Since December, in all three months, Rupee fell substantially after the month end," said Anil Kumar Bhansali, head, treasury and executive director, Finrex Treasury Advisors LLP. "Exporters to continue waiting for their receivables hedging while importers may buy the dips for any hedging left."

The dollar index rebounded in the Asia session, which weighed on the Indian unit. The index declined for a brief time on Tuesday after data showed US consumer confidence fell to the lowest level in four years on concerns about economy.

It was trading 0.07% higher at 104.26 as of 8:53 a.m.

Crude oil prices extended gains to sixth session on Wednesday. Worries over supply increased after an industry report showed a major contraction in US stock piles.

The May future contract of crude oil was trading 0.27% higher at $73.22 a barrel as of 8:52 a.m.