The rupee rose by 30 paise to 70.05 against the US currency in opening trade Friday aided by foreign fund inflows amid a weak dollar globally and sharp fall in crude oil prices. Domestic stock markets opened with gains of up to 1 per cent which also supported the local currency.
The US dollar fell against major global currencies as investors turned their focus to safe-haven currencies amid renewed worries over US-China trade tensions and global economic growth. The dollar index, which gauges the American currencies strength against a basket of six currencies, was down 0.23 per cent at 96.35.
Overnight losses in crude oil also supported early gains in the rupee, analysts said. Crude oil declined by 4.24 per cent to USD 52.16 per barrel Thursday after reports of an increase in US inventories.
The oil prices, however, recovered losses Friday to trade 2.26 per cent higher at USD 53.34 a barrel. At the Interbank Foreign Exchange, the rupee opened strong at 70.05 a dollar against the previous close of 70.35.
The domestic unit moved in a tight range of 70.1250 to 70.03 in early trade. The rupee was quoted at 70.10 to the US dollar at 0935 hrs, showing gains of 25 paise or 0.36 per cent.
Foreign portfolio investors (FPIs) bought shares worth Rs 1,731.91 crore Thursday on a net basis. Meanwhile, BSE benchmark Sensex rallied 304 points or 0.85 per cent to trade above 36,000 level. The broader NSE Nifty gained 86 points or 0.81 per cent in early trade.
source: zeebiz.com