Rupee opened strong in the early trade Wednesday, gaining 40 paise at 73.23 per US dollar versus 73.57 yesterday amid sharp fall in global crude oil prices.
Rupee opened strong in the early trade Wednesday, gaining 40 paise at 73.17 per US dollar versus 73.57 yesterday amid sharp fall in global crude oil prices. On Tuesday, The partially convertible rupee plunged in the first half but surged in the second half after the fall in the oil prices. The 10-year bond yields were down 4 basis points at 7.85 percent.
“Rupee is expected to extend its rise today. As had mentioned in previous reports, USDINR was in an exaggerated zone between 74.00 to 74.50 levels. A (mild) reversal in USDINR pair can be seen if it breaks 73.00/72.80 levels, whereas an outer-break of 74.50 can lead to fresh declines for Rupee. Importers can utilise the prevailing levels to hedge this and next month’s payment commitments, with a trailing stop of 73.50. And Exporters can keep a stop of 73.00, and entries towards 73.50+ for any gap positions,” Hiren Sharma, Portia Advisory Services LLP said.
Meanwhile, Sensex and Nifty Sensex and Nifty opened higher on Wednesday. The Sensex is up by 426.32 points or 1.26 percent at 34273.55, while the Nifty is up by 133.40 points or 1.31 percent at 10280.20.
Globally, the Asian stocks edged lower on Wednesday as concerns, ranging from worries about U.S. corporate earnings to Middle East tensions, weighed on sentiment while crude oil approached two-month lows after Saudi Arabia flagged possible supply increases, said a Reuters report. In commodities, crude oil prices slid after Saudi Arabia said it could supply more crude quickly if needed, easing concerns ahead of U.S. sanctions on Iran.
Overnight crude fell by over 4 percent and dropped to the lowest level in two months as sell-off in global equity markets raised worries about demand growth and after Saudi Arabia said it could supply more crude quickly if needed, reported Motilal Oswal.