The Indian rupee opened higher against the US dollar on Wednesday tracking gains in the domestic equity markets. At 10.55 AM, the Indian rupee was trading 13 paise or 0.18 per cent higher at 71.20 a dollar against the previous close of 71.33 a dollar. On the year-to-date (YTD) basis, the Indian rupee has strengthened 0.24 per cent. “Prior to budget, we can see USD/INR trading within 70.75-71.50, only a shocking budget may take USD/INR above 71.50 otherwise it will continue to consolidate within a broad range of 70.50 and 71.60,” Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services said. Earlier, the rupee had settled at 71.31 against the US dollar on Tuesday.
Riskier currencies steadied on Wednesday and demand for safe-havens ebbed, as investors waited for more news on the likely economic damage from a virus outbreak spreading from China, as per the Reuters news report. Brent crude rose 85 cents, or 1.43 per cent, to $60.36 a barrel. US crude was up 75 cents, or 1.4 per cent, at $54.23 a barrel.
In the domestic market, Sensex and Nifty were trading over 0.75 per cent higher ahead of Union Budget scheduled on February 1, 2020. S&P BSE Sensex was trading 305 points or 0.75 per cent higher at 41,275.53, while broader Nifty 50 index was ruling at 12,152.75, up 97 points or 0.80 per cent. On a net basis, foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 1,358 crore while DIIs were net buyers to the tune of Rs 712 crore on Tuesday, as per the data available with NSE.