Indian Rupee: Strengthens In Early Trades

The Indian rupee rebounded against the dollar in early trades on Wednesday, 04 April 2018 on increased selling of the greenback by exporters and banks ahead of Reserve Bank of Indias first bi-monthly monetary policy meet for FY19. The six-member Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, is to meet on April 4 and 5. Weakness in the dollar against other currencies overseas on escalating US-China trade worries and a higher opening of the domestic equity market too supported the domestic unit.

The domestic currency was seen at Rs 64.97 in opening trades and climbed further to a high of 64.9050 so far during the day. In the spot currency market, the Indian unit was last seen trading at 64.9750. Yesterday, the local currency strengthened by 17 paise to close at 65.01 per dollar on fresh selling of the dollar.

Local stocks picked up steam in morning trade to hit fresh intraday high. At 10:18 IST, the barometer index, the S&P BSE Sensex, was up 78 points or 0.23% at 33,448.63. The Nifty 50 index was up 16.85 points or 0.16% at 10,261.85. Realty stocks gained ahead of the outcome of the Reserve Bank of Indias (RBI) monetary policy meeting. Cement stocks edged higher. Index heavyweight Reliance Industries (RIL) rose. Trading for the day began on a quiet note as stocks traded with small gains in early trade.

Overseas, Asian stocks were trading mixed as investors took a cautious stance following the latest developments in US-China trade tensions. US stocks closed higher yesterday, 3 April 2018 as investors digested a sharp move lower in the previous session and gauged the likelihood of both trade risk and further weakness in technology names.

Meanwhile, the dollar eased against the yen on Wednesday, with the outlook clouded by worries that escalating U.S.-China trade tensions could exert a toll on the global economy and U.S. growth. The dollar fell 0.1 percent to 106.50 yen, giving back some of the gains made on Tuesday, when it rose 0.6 percent against the Japanese currency. The dollars index against a basket of six major currencies fell 0.1 percent to 90.071.