Rupee rises 67 paise against US dollar on falling crude prices

Mumbai: The rupee appreciated 67 paise to 72 against the US dollar at the interbank foreign exchange on Wednesday after crude prices fell to a one-year low in the global market, easing concerns over expanding current account deficit and inflation.

The rise in the rupee was also supported by dollar-selling by exporters and banks and the US unit's weakness against some currencies overseas, traders said. Furthermore, a higher opening in the domestic equity market too supported the rupee.

Brent crude, the international benchmark, dropped almost 7 per cent to a one-year low of USD 65 a barrel after the US President Donald Trump urged Organization of the Petroleum Exporting Countries (OPEC) and Saudi Arabia to maintain their current policy of gradually increasing output, which helps to cap oil prices.

At the interbank forex market, the rupee commenced with strength at 72.18 and appreciated further to quote 67 paise higher at 72 against the US dollar. The rupee had gained 22 paise to close at 72.67 against the US dollar on Tuesday.

Foreign institutional investors (FIIs) had sold shares worth Rs 494.95 crore on Tuesday, as per provisional data. Meanwhile, the benchmark BSE Sensex rose 156.56 points, 0.45 per cent, to 35,301.05 in early trade.