The Indian rupee fell further against the dollar in early trades on Wednesday, 12 April 2017 following fresh demand for the American currency from banks and importers.
Moreover, the US dollar's gains against some currencies overseas put the rupee on backfoot. However, a higher opening of the domestic equity market capped the rupee's fall.
The domestic currency opened at Rs 64.60 against the dollar and registered an intraday high and low of 64.5375 and 64.73 respectively so far during the day. In the spot currency market, the Indian unit was last seen trading at 64.7225.
Yesterday, the rupee had recovered some of the lost ground and advanced by 6 paise to end at 64.50 against the US dollar amid mild selling of the American currency by exporters.
Domestic indices seesawed between the negative and positive terrain in a narrow range near the flat line in early trade. At 9:30 IST, the barometer index, the S&P BSE Sensex, was up 7.83 points or 0.04 p ercent at 29,800.10. The Nifty 50 index was up 3.10 points or 0.03 percent at 9,240.10. Metal and realty stocks gained in early trade.
Overseas, most Asian stocks trade lower as a drumbeat of alarming geopolitical news shifted investors away from risky assets to safe-haven assets. North Korea warned yesterday, 11 April 2017, of a nuclear attack on the United States at any sign of aggression, as a US Navy strike group steamed toward the western Pacific - a force President Donald Trump described as an armada.
Meanwhile, the U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, rose 0.02 percent to 100.63. Overnight, the dollar slumped against a basket of major currencies on Tuesday, as the 'flight to safety' sentiment began to set in for investors amid rising geopolitical tensions.
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Technical comment for the day: Copper