The Indian rupee extended its winning streak for the third day in a row on Friday, 01 June 2018 on continued selling of the American currency by banks and exporters amid robust macroeconomic data. Data released by the CSO yesterday showed gross domestic product (GDP) growth in the January-March quarter of 2017-18 was at a seven-quarter high of 7.7 per cent, helping India retain the tag of worlds fastest growing major economy. Besides sustained selling of the American currency by exporters as well as banks, a higher opening in the domestic equity market supported the rupee. However, the dollars strength against other currencies overseas capped the gains.
The domestic currency opened at Rs 67.37 against the dollar and advanced further to a high of 67.17 so far during the day. In the spot currency market, the Indian unit was last seen trading at 67.2525. Yesterday, the local currency had edged up by 2 paise to end at 67.41 against the American currency on stray dollar selling by banks and exporters.
Domestic benchmark indices nudged higher in early trade following good GDP data announced by the government after market hours yesterday, 31 May 2018. At 9:21 IST, the barometer index, the S&P BSE Sensex, was up 88.97 points or 0.25% at 35,411.35. The Nifty 50 index was up 20.50 points or 0.19% at 10,756.65.
On the macro front, Indias GDP rose at 7.7% in the fourth quarter of 2017-18 compared with 6.1% in the same period last year, and a revised 7% in the quarter ended December, government data released after market hours yesterday, 31 May 2018 showed. For the full financial year, GDP grew at 6.7% compared with 7.1% in the previous year.
Overseas, most Asian stocks slipped after the Trump administrations tariffs on imports from key allies sent US and European stocks into a tailspin. US stocks fell yesterday, 31 May 2018 as the presidents escalation of trade tensions with Canada, Mexico and the European Union hammered American industrial and financial shares.
Meanwhile, the dollar oscillated around the 94 value in Friday morning trade in Asia while gaining slightly against major Asian currencies. The U.S. dollar index climbed to this years fresh high at 94.93 on Wednesday then lost its rally. The index that tracks the greenback against a basket of six major currencies added 0.16% to 94.10.