Indian Rupee: Recovers In Early Trades

The Indian rupee recovered against the dollar in early trades on Wednesday, 28 March 2018 on increased selling of the greenback by exporters amid foreign fund inflows. A lower opening of the domestic equity market weighed on the domestic currency, but dollars weakness against other currencies limited the losses.

The domestic currency recovered by 7 paise to 64.90 against the US dollar in opening trade today at the forex market and was seen in a range of 64.88 and 64.96 so far during the day. In the spot currency market, the Indian unit was last seen trading at 64.9475. Yesterday, the rupee had lost 10 paise and slipped to 64.97 against the US currency, cutting short its three-day upmove on bouts of dollar buying by banks and exporters.

Domestic benchmark indices edged lower in early trade tracking weakness in Asian peers and overnight slide on Wall Street. At 9:15 IST, the barometer index, the S&P BSE Sensex, fell 152.07 points or 0.46% at 33,022.32. The Nifty 50 index dropped 40.55 points or 0.4% at 10,143.60. Meanwhile, on a net basis, foreign funds bought shares worth Rs 1,063.12 crore, while domestic institutional investors made purchases to the tune of Rs 2,172.91 on the bourses yesterday, provisional data showed.

Overseas, Asian stocks dropped tracking overnight slide on Wall Street. US stocks closed sharply lower yesterday, 27 March 2018, erasing earlier gains, as a decline in the broader tech sector brought the major indices down. Last week, reports emerged alleging that Cambridge Analytica, an analytics company, had gathered data from 50 million Facebook profiles without users permission, raising concerns over data privacy.

Meanwhile, the dollar recovered slowly in Asia on Wednesday morning as the safe-haven yen retreated against the greenback on risk-on sentiment that gave other Asian currencies a lift. Over in Asia, the developments in the Korean peninsula and attempts to end the political scandal in Japan were risk-on developments that prompted investors to bet on risk assets. The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 88.92, down 0.04%, testing the 90 level. It recovered from a one-month low at 88.59 on Tuesday.