Indian Rupee: Recovers For Second Straight Day

The Indian rupee recovered for a second straight day against the dollar on Friday, 25 May 2018 on increased selling of the greenback by exporters and banks. Besides increased selling of the American currency by exporters as well as banks, a higher opening in the domestic equity market supported the rupee.

The rupee climbed 9 paise to 68.25 against the dollar in opening trades and climbed to a high of 68.1575 so far during the day. In the spot currency market, the Indian unit was last seen trading at 68.23. Yesterday, the local currency had rebounded from near 18-month low to close with gains of 8 paise at 68.34 against the US dollar as the greenback fell against global currencies after minutes of the Federal Reserve committee revealed a relatively dovish stance over interest rate hikes.

Domestic benchmark indices were trading higher in early trade. At 9:17 IST, the barometer index, the S&P BSE Sensex, was up 62.06 points or 0.18% at 34,725.17. The Nifty 50 index was up 12.95 points or 0.12% at 10,526.80. Overseas, Asian shares were mixed after US President Donald Trump cancelled a planned meeting with North Korean Leader Kim Jong Un that had been set to take place in Singapore on 12 June 2018. Trump said participating in the summit would be inappropriate given the tremendous anger and open hostility displayed by North Korea, which had reportedly suspended direct communication with the US this week.

Meanwhile, the dollar rose against the other major currencies in Asia in late morning trade Friday, with the U.S. dollar index testing the 94 level. The market appeared to take in stride news that U.S. President Donald Trump decided to cancel a planned summit with North Korean leader Kim Jong Un. U.S. dollar index, which tracks the dollar against a basket of six major currencies, stood at 93.83, up 0.11%, at 11:42PM ET (03:42 GMT). This week the greenback climbed to its highest level for the year when the index hit 94.10 on Wednesday night.