Sharp reduction in dollar index, oil prices help rupee to open 8 paise higher

The local currency opened at 86.89 against the US dollar, as compared to 86.97 against the greenback at previous close.

Indian rupee opened 8 paise up on March 6 due to sharp reduction in the dollar index and Brent crude oil prices.

The local currency opened at 86.89 against the US dollar, as compared to 86.97 against the greenback at previous close.

The dollar index, which measure American currency's value against six major global peers, fell to 104.30 in the early trade. It was trading at 105 levels in last two trading sessions.

Dollar index continued it downward path due to weaker-than-expected labor market data, coupled with rising trade tensions and policy uncertainty, is pushing the US Dollar further down.

Additionally, market confidence is eroding due to Trump’s unpredictable trade policies. With his latest tariff delays on Mexican and Canadian automakers have left investors questioning the stability of US trade policy, further weighing on the dollar, Ami Pabari, managing director at CR Forex Advisors said.

Further, Brent crude oil prices have dropped sharply after reports revealed that US crude stocks had risen by 3.6 million barrels over the past week, surpassing market expectation.

Today, Brent crude oil prices were trading at $69.70 per barrel.

On March 5, Indian rupee on appreciated over 30 paise at close and posted its best day in terms of appreciation in over three weeks.