Indian Rupee: Rebounds On Dollar Sales; Higher Opening Of Local Shares

The Indian rupee rebounded by 8 paise against the dollar in opening trades on Tuesday, 24 April 2018 on some selling of the greenback by exporters and banks. A higher opening of domestic equities too lifted the domestic currency. In global trade, the US dollar had strengthened against major world currencies overseas, while investors maintained focus on the US Treasury market, where the 10-year yields were near with 3 per cent.

The domestic currency traded in a range of 66.3425 and 66.4475 so far during the day. In the spot currency market, the Indian unit was last seen trading at 66.3850. Yesterday, the rupee had lost 36 paise to hit a fresh 13-month low of 66.48 against the US dollar as rising crude prices and sustained foreign fund outflows led to subdued forex market sentiment.

Domestic benchmark indices were trading higher in early trade. At 9:20 IST, the barometer index, the S&P BSE Sensex, was up 111.06 points or 0.32% at 34,561.83. The Nifty 50 index was up 11.50 points or 0.11% at 10,596.20.

Overseas, Asian shares were mixed. US stocks ended on a mixed note as investors grappled with rising bond yields and a mixed bag of earnings reports. The closely watched yield on the 10-year Treasury note climbed, settling just below the psychologically important 3% level.

Meanwhile, the dollar continued to rally on Tuesday morning in Asia along with the higher yields on U.S. Treasuries that hit a four-year high, and the rally in the dollar weighed down the yen. Meanwhile, eyes were on the Aussie in the morning as Australia released some lacklustre CPI data. The U.S. dollar index that tracks the greenback against a basket of six major currencies gained 0.01%, the strongest level since March 1.