Indian Rupee: Trims Early Gains On Weak Equities

The Indian rupee strengthened against the dollar in early trades on Wednesday, 12 June 2019 driven by easing crude oil prices and foreign fund inflows. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 95.79 crore Tuesday, according to provisional exchange data. Weakening of the greenback vis-a-vis some major currencies overseas aided the local unit. However, a weak opening in domestic equities weighed on the domestic currency.

The domestic currency market, the Indian rupee opened at Rs 69.38 against the dollar and registered an intraday high and low of 69.36 and 69.4450 respectively so far during the day. In the spot currency market, the Indian unit was last seen trading at 69.4350. The rupee had settled at 69.44 against the US dollar Tuesday.

Domestic benchmark indices were trading lower in early trade amid negative global cues. At 9:19 IST, the barometer index, the S&P BSE Sensex, was down 109.60 points or 0.27% at 39,840.86. The Nifty 50 index was down 33 points or 0.28% at 11,932.60.

Overseas, Asian stocks declined on Wednesday. US stocks declined on Tuesday, snapping a six-day winning streak. President Donald Trump reportedly said he is personally holding up a trade deal with China and that he will not complete the agreement unless Beijing returns to terms negotiated earlier in the year.

Meanwhile, the US dollar index was unchanged on Wednesday in Asia after U.S. President Donald Trump said the officials of the Federal Reserve n++dont have a cluen++ on rates. Overnight, Trump tweeted that the euro and other currencies are undervalued against the dollar, n++putting the U.S. at a big disadvantage. The Fed Interest rate way too high, added to ridiculous quantitative tightening! They dont have a clue!n++ Trump also said that the U.S. has low inflation, calling it n++a beautiful thing.n++ The U.S. dollar index that tracks the greenback against a basket of other currencies was unchanged at 96.645.