The rupee gained strength as it passed 70 per US dollar mark after a solid opening on Wednesday and touched an intraday low of 69.86 per US dollar, up about 70 paise.
After logging its single best gain on Tuesday in over five years, the Indian rupee made a solid opening on Wednesday by rising over 34 paise to 70.10 per US dollar. The domestic currency further gained strength as it passed 70 per US dollar mark and touched an intraday low of 69.86 per US dollar, up about 70 paise from the previous close. This was the first time rupee breached the 70 level since December 3. Falling crude oil prices are aiding the rally on the Indian currency.
On Tuesday, the rupee rallied by a whopping 112 paise to settle at 70.44 against the US dollar, on the back of softening crude oil prices that eased concerns over India’s mounting current account deficit concerns. Weakness in US dollar against its rivals ahead of US FE policy decision also helped the Indian rupee to appreciate further.
The domestic stock markets- Sensex and Nifty opened higher on Wednesday, tracking mixed global cues. Sensex rallied 146 points in the opening trade to 36,493.46, while the Nifty 50 was trading just 5 points shy of 10,950-mark.
Meanwhile, crude oil prices dropped about 7%, hitting a low last seen in August 2017 amid concern over the supply concerns and pessimism on demand due to the ongoing trade war and slowing global economic growth. Crude oil prices are currently about 34.5% down from their 2018 peak of $ 86.29 per barrel seen on 3 October.
Asian share markets too played second string to bonds on Wednesday as a spectacular fall in the price of oil spurred speculation the U.S. Federal Reserve might be done with tightening after its policy meeting later in the session.