Indian Rupee: Depreciates Further On Soaring Crude Prices

The Indian rupee plummeted further against the dollar in early trades on Thursday, 19 April 2018 on increased demand for the greenback from importers and banks amid soaring crude oil prices overseas. Foreign capital outflows too weighed on the domestic unit. However, weakness in the US dollar against select currencies and higher opening in domestic equity market limited some of fall in the rupee.

The Indian rupee depreciated 15 paise to 65.81 against the US dollar in opening trade at the interbank forex market and dropped further to a low of 65.85 so far during the day. In the spot currency market, the Indian unit was last seen trading at 65.7550. Yesterday, the rupee had slipped by 2 paise to settle at a seven-month low of 65.66 against the US currency due to sustained dollar demand.

Domestic stocks resumed uptrend after taking a one-day pause yesterday, 18 April 2018 on steady buying in index pivotals. At 9:27 IST, the barometer index, the S&P BSE Sensex, was up 97.38 points or 0.28% at 34,429.06. The Nifty 50 index was up 32.85 points or 0.31% at 10,559.05.

Overseas, Asian stocks rose, building on gains a day earlier, with oil prices at 3n++-year highs helping to boost sentiment for the regions equities. In US, the Dow industrials ended lower yesterday, 18 April 2018 as IBMs shares got walloped; however, gains in shares of energy-related firms helped the broader market post modest gains. Wall Street showed a muted reaction to the release of the Beige Book report, which underscored that economic activity remained at a modest to moderate pace in March and early April.

Meanwhile, the dollar was steady against a basket of its peers on Thursday, supported by higher long-term U.S. Treasury yields on improving investor appetite for risk assets, though lingering concerns over U.S.-China trade tensions checked the greenback. The dollar index against a group of six major currencies was flat at 89.633 (DXY) after edging up 0.1 percent on Wednesday. The U.S. currency gained 0.15 percent to 107.410 yen , adding to the previous days modest gains.