Indian Rupee: Surges In Early Trades

The Indian rupee gathered further gains against the dollar in early trades on Thursday, 05 April 2018 on fresh selling of the greenback by exporters and banks ahead of the RBIs monetary policy outcome later in the day. Weakness in the dollar against some other currencies overseas and early gains in domestic equity markets supported the rupee.

Rupee surged by 15 paise to 65.02 in opening trades against the dollar and climbed above the crucial Rs 65 per dollar mark to touch an intra day high of 64.98 so far during the day. In the spot currency market, the Indian unit was last seen trading at 65.01. Yesterday, the rupee fell 14 paise to end at 65.15 against the US dollar.

Domestic stocks saw a gap-up opening tracking firm Asian stocks. At 9:30 IST, the barometer index, the S&P BSE Sensex, was up 375.33 points or 1.14% at 33,394.40. The Nifty 50 index was up 125.95 points or 1.24% at 10,254.35.

Overseas, Asian shares were trading higher as optimism grew that the US and China will step back from the brink of a trade war. Representatives from China and the US left the door open for a negotiated solution to avoid tariff proposals that wouldnt take effect for months. Markets in mainland China, Hong Kong and Taiwan were closed for holidays.

Meanwhile, the dollar held steady against the yen on Thursday after recovering against the safe-haven Japanese currency as stocks bounced back from a sell-off triggered by an escalating U.S.-China trade spat. The greenback was a shade higher at 106.845 yen, having pulled higher from a low of 105.990 set the previous day.