Indian Rupee: Strengthens On Positive Local Shares; Fresh Dollar Sales

The Indian rupee strengthened against the dollar in early trades on Monday, 09 April 2018 on fresh selling of the greenback by banks and exporters. Besides, a higher opening of the domestic equity market and weakness in the dollar against other global currencies, following data that showed the US economy created the least number of jobs in six months in March, supported the rupee.

The domestic currency opened at Rs 64.8550 against the dollar and climbed to a high of 64.8450 so far during the day. In the spot currency market, the Indian unit was last seen trading at 64.8975. The domestic unit had ended flat at 64.97 against the US dollar in a quiet range-bound trade on Friday as local equities consolidated their recovery momentum.

Domestic benchmark indices were trading with small gains in early trade. At 9:18 IST, the barometer index, the S&P BSE Sensex, was up 14.83 points or 0.04% at 33,641.80. The Nifty 50 index was up 12.45 points or 0.12% at 10,344.05.

Overseas, Asian stocks were trading higher. China has tightened restrictions on exports to North Korea of items with potential dual use in weapons of mass destruction and conventional arms. The ban on exports of potential dual-use items, including software, machinery and chemicals, is in line with UN Security Council resolution number 2375. That resolution was passed in September. US stocks closed sharply lower on Friday, 6 April 2018, led by a selloff in industrials and financials, as investors continued to fret over an escalating China-US trade fight.

In the meantime, the dollar steadied on Monday, having retreated late last week due to concerns over U.S.-China trade tensions and following data that showed the U.S. economy created the fewest jobs in six months in March. The dollar index (DXY) against a basket of six major currencies inched up 0.1 percent to 90.189 after a drop of 0.4 percent on Friday. The dollar index had set a one-month high of 90.597 ahead of the U.S. nonfarm payrolls report data on Friday but later lost some steam, weighed down by concerns about the U.S.-China trade dispute and the disappointing U.S. jobs data.