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Last Updated : Nov 09, 2018 06:54 PM IST | Source: PTI

Rupee jumps 50 paise to 72.50 against US Dollar on easing crude prices

The dollar weakened following the US mid-tem election results, which showed Democrats wresting control of the House of Representatives from the ruling Republican party.

The rupee rose by 50 paise to end at 72.50 per US dollar on November 9 due to increased selling of the greenback by exporters amid softening crude oil prices, which slipped below the $70 per barrel mark.

The dollar weakened following the US mid-tem election results, which showed Democrats wresting control of the House of Representatives from the ruling Republican party.

However, it later staged a recovery after the US Fed kept interest rates unchanged but indicated a hike next month.

Forex traders said the rupee's rise was supported by dollar-selling by exporters and banks, and the greenback's weakness against some currencies overseas.

At the Interbank Foreign Exchange (forex) market, the rupee opened on a firm note at 72.68 from November 6 closing of 73.

It climbed to a high of 72.45, driven by dollar selling by exporters, but ceded some ground to finally end at 72.50, up 50 paise over its last close.

The rupee had rebounded by 12 paise to end at 73 per US dollar on November 6. In the last two trading sessions, the rupee has gained 62 paise.

The forex market was closed on November 7 and 8 on account of 'Diwali' and 'Diwali Balipratipada' respectively.

Globally, Brent crude, the international benchmark, slipped below the $70 per barrel mark on November 9 before a weekend meeting of major oil producing nations in Abu Dhabi.

Meanwhile, foreign institutional investors (FIIs), which had been selling on the Indian bourses, made fresh purchases worth Rs 31.02 crore on November 7, as per provisional data.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 72.7347 and for rupee/euro at 82.5195. The reference rate for rupee/British pound was fixed at 94.8737 and for rupee/100 Japanese yen at 63.84.

Meanwhile, domestic benchmark indices ended on a negative note after a choppy session on November 9.

The 30-share Sensex fell 79.13 points, or 0.22 percent, to close at 35,158.55, while the broader NSE Nifty slipped 13.20 points, or 0.12 percent, to 10,585.20.
First Published on Nov 9, 2018 06:43 pm
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