Rupee recovers 29 paise to 72.60 against dollar in early tradehttps://indianexpress.com/article/business/market/rupee-recovers-29-paise-to-72-60-against-dollar-in-early-trade-5443569/

Rupee recovers 29 paise to 72.60 against dollar in early trade

Fund inflows by foreign investors and the US dollar's weakness against some currencies overseas also supported the domestic unit, dealers said.

sensex, stock market today, rupee dollar rate, rupee rate today, sensex fall today, Bombay Stock Exchange, National Stock Exchange, business news, Indian Express
On Monday, the rupee dropped by 39 paise to settle at 72.89 against the US currency as oil prices rebounded after Saudi Arabia announced plans to cut production and the dollar strengthened in global markets. (Representational)

The rupee recovered by 29 paise to 72.60 against the US currency in early trade Tuesday, owing to easing global crude oil prices and better-than-expected macro-economic data on the domestic front.

Besides, fund inflows by foreign investors and the US dollar’s weakness against some currencies overseas also supported the domestic unit, dealers said.

At the Interbank forex market, the rupee opened with strength at 72.81 and advanced to 72.60 against the dollar, showing a rise of 29 paise over its previous close of 72.89.

Industrial production grew at the slowest pace in four months at 4.5 per cent in September mainly due to poor performance of mining sector and lower offtake of capital goods.

Advertising

The industrial production measured in terms of Index of Industrial Production (IIP) was 4.1 per cent in September 2017.

On Monday, the rupee dropped by 39 paise to settle at 72.89 against the US currency as oil prices rebounded after Saudi Arabia announced plans to cut production and the dollar strengthened in global markets.

Sensex up by 46 points after choppy morning trade

The benchmark indices turned choppy in morning trade Tuesday and oscillated between gains and losses, driven by better-than-expected macro economic data and fresh foreign fund inflows amid global sell-off.

The 30-share index fell over 140 points in opening trade but soon recovered the lost ground to quote higher by 46.12 points or 0.13 per cent at 34,859.11.

Similar movement was seen on the wide-based Nifty, which fell by 42 points, but soon gathered momentum and was trading higher by 21.45 points or 0.20 per cent at 10,503.65.

Traders said the benchmarks opened lower tracking global sell-off, but better-than-expected macro economic data supported investor sentiment.

Besides, easing global crude oil prices, which slipped below the USD 70 a barrel mark and recovery in the rupee also supported the uptrend. The global benchmark, Brent crude was trading down 0.98 per cent at USD 69.43 per barrel.

The 30 share index had lost 425 points in the previous two days. Sectoral index, led by oil & gas, PSU, metal, power and IT gained up to 1.06 per cent.

Major gainers include, Asian Paints, Coal India, Axis Bank, Adani Port, Vedanta, PowerGrid, TCS, Tata Steel and ONGC, rising up to 1.14 per cent.

The losers include, Tata Motors, Sun Pharma, Bharti Airtel, Hindustan Unilever, IndusInd Bank, Bajaj Auto and Wipro falling up to 2.26 per cent.

Meanwhile, retail inflation fell to a one-year low of 3.31 per cent in October on the back of cheaper kitchen staples, fruits and protein-rich items, official data released Monday showed.

Meanwhile, on a net basis, Foreign institutional Investors (FIIs) bought shares worth Rs 832.15 crore, while domestic institutional investors (DIIs) sold shares of Rs 1,073.84 crore Monday, provisional data showed.

Asian markets were trading lower tracking losses at the Wall Street.

Japan’s Nikkei plugned 3.21 per cent, Korea’s KOSPI fell 1.52 per cent, Hong Kong’s Hang Seng down 1.23 per cent and Shanghai Composite Index shed 0.21 per cent in early trade Tuesday.

Advertising

The US Dow Jones Industrial Average tumbled 2.32 per cent Monday.