Friday, Apr 19, 2024 | Last Update : 12:20 PM IST
Re rises 49p on yuan appreciation, oil fall
The greenback eased against its major counterparts tracking lower US yields and poor Purchasing Managers Index data from the US.
Mumbai: The rupee on Friday rose 49 paise to close at 69.53 against the US dollar, mirroring an appreciation in Chinese Yuan and all emerging market currencies against the dollar. A fall in the Brent crude prices also helped the rupee.
The greenback eased against its major counterparts tracking lower US yields and poor Purchasing Managers Index data from the US.
At the interbank foreign exchange, the rupee opened at 69.75 against the previous close of 70.02. USD/INR traded between Rs 69.49 to a dollar and Rs 69.80. The Indian unit finally settled the day at 69.53, gaining 49 paise, or 0.70 per cent.
Samir Lodha, Managing Director of QuantArt, a forex advisory firm, said, “Today’s trigger for rupee’s appreciation is not the Lok Sabha election results but a stability in the global market, as the dollar-yuan came below 6.90 and all emerging market currencies too appreciated in line against the US dollar. The market had already factored a BJP victory when the exit polls were announced, however, it could be the hygiene factor. Secondly, Brent crude prices have fallen by 5 per cent, which is also quite positive for the rupee”
Lodha said he expects the rupee to trade between 69 to 70.5 levels against the dollar, with a bias towards 70.5 in the medium-term.
Oil prices fell nearly 5 per cent this fiscal year to print the lowest level since end March. Lower oil prices help currencies of major net importers of oil, such as India and China. The Brent cooled to $68 a barrel and the dollar was also down from its two-year high following a sharp decline in US Treasury yields. Brent crude prices plunged after a surprise surge in American crude inventories alleviated concerns over a supply crunch, while fears of a full-blown trade war between the US and China weighed on the outlook for demand.
The US Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies against the dollar, another move that could slap higher tariffs on Chinese products. China’s Commerce Ministry hit back with its spokesman saying the US wants to continue trade talks, they should show sincerity and correct their wrong actions.
FIIs remained net buyers in the capital market on Friday, buying shares worth 2,026.33 crore.
