The Indian rupee appreciated in early trades on Wednesday, 15 March 2017 as selling of the US dollar by exporters and banks and its weakness overseas gave the rupee an advantage. Further, a higher opening in the domestic stock market fuelled rupee uptrend.
The domestic currency opened at Rs 65.74 against the dollar and surged to a high of 65.405 so far during the day. In the spot currency market, the Indian unit was last seen trading at 65.54.
Yesterday, the rupee had jumped a massive 78 paise to end at 65.82, a nearly one-and-a-half year high, amid expectations that BJP's emphatic victory in Uttar Pradesh will embolden the government to go for more reforms.
Domestic benchmark indices were trading almost unchanged amid range bound trade near the flat line in early trade amid lower Asian stocks. At 9:20 IST, the barometer index, the S&P BSE Sensex, was almost unchanged at 29,442.01.
The Nifty 50 index was also trading almost unchanged at 9,087.10. Investors maintained caution ahead of the Federal Reserve's policy meet later in the day and after domestic bourses posted a strong surge in the previous session.
Overseas, Asian stocks edged lower after the overnight losses on the Wall Street as investors took profits before a US central bank policy meeting that could signal how much monetary tightening to expect during the remainder of the year, with an immediate rate hike fully priced in by markets.
Meanwhile, the dollar was on tenterhooks in Asian trading on Wednesday as investors waited anxiously to see what clues the US Federal Reserve would soon reveal on its monetary policy outlook.
The US central bank began its two-day monetary policy meeting on Tuesday. With the futures market pricing in more than a 90 percent chance that it would raise interest rates, investors' main focus turned to what its statement would say about the pace of hikes this year.
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