Rupee gains 11 paise against US dollar as forex market opens after 5-day holiday

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Published: April 3, 2018 10:03:52 AM

The Indian rupee surged as much as 11 paise against the US dollar on Tuesday as foreign exchange market opened after an extended holiday of 5 straight days.

The Reserve Bank of India fixed a reference rate of 65.0441 against the US dollar on Wednesday. (Image: Reuters)

The Indian rupee surged as much as 11 paise against the US dollar on Tuesday as foreign exchange market opened after an extended holiday of 5 straight days. The forex market was closed for last five days with regard to the nation-wide holidays for Mahavir Jayanti (29 March 2018), Good Friday (30 March 2018), 2 April 2018 (annual accounts closing holiday) which is inclusive of Saturday and Sunday. The rupee added about 11 paise to 65.07 a piece US dollar at the interbank foreign exchange market on Tuesday.

The rupee opened at 65.09 against the US dollar in the morning deals on Tuesday. Earlier on Wednesday last week, the rupee ended down 21 paise at 65.18 against the US dollar on the worries fiscal deficit inching higher. India’s fiscal deficit escalated to Rs 7.15 lakh crore at the end of February, which is 120% of the even revised full-year target of the financial year 2018-2019. The Reserve Bank of India fixed a reference rate of 65.0441 against the US dollar on Wednesday.

The US dollar held steady at 105.91 yen, struggling to gain traction after having fallen for three straight trading days, and trading below a two-week high around 107.00 yen set on March 28. The US dollar weakened against other global currencies as China imposed extra tariffs on US products, escalating a dispute between two of the world’s biggest economies, and supporting the domestic unit here, PTI reported.

Meanwhile today, Indian bonds rallied after the Reserve Bank of India allowed banks to spread their trading losses on bonds over four quarters. Indian equity markets were trading flat with increased volatility after the key equity indices Sensex and Nifty started in negative territory following a drop in regional markets on the back of Wall Street losses. Investors are keenly awaiting the outcome of Reserve Bank of India’s the first bi-monthly policy meeting set to start today.

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