Rupee recovers from record low, rises 38 paise against US dollar in early trade

By: | Updated: August 20, 2018 10:09 AM

Weakness in the US Dollar, along with a higher opening of the domestic equity markets on Monday, helped the rupee to strengthen after scaling record low levels last week.

Corporate Fixed depositsThe rupee today recovered from its all-time low by rising 38 paise to 69.77 against the US dollar in early trade.

Recovering from its record low closing on Thursday, the Indian rupee rose by 38 paise to 69.77 against the US dollar in early morning trade on Monday. Weakness in the US Dollar, along with a higher opening of the domestic equity markets on Monday, helped the rupee to strengthen after scaling record low levels last week. On Thursday, the rupee had collapsed to a fresh intra-day low of 70.40 before closing at a new low of 70.15 against the greenback, down by 26 paise or 0.37%.

The Indian rupee had slumped to a record low of 70.40 against the US dollar in intra-day trade deals on Thursday affected by a sell-off in emerging currencies on the back of a free fall in Turkish Lira. Besides, the US dollar has risen nearly 8% over the last four months and hit a fresh 13-month high on Wednesday. Moreover, widened trade deficit and capital outflows, too, led to the plunge in the rupee. The currency markets were closed on Friday on account of Parsi’s New Year.

“On Friday, we saw Dollar dipping as US-China trade talks helped risk appetite return to financial markets. Qatar’s pledging to invest $15 billion in Turkey on Thursday helped Turkish Lira to recover and helping many of the emerging market currencies to recover,” Bhavik Patel – Sr. Technical Analyst, Tradebulls Securities, told FE Online. “Volatility seems to have fizzled out in last 24 hours and stability in Chinese Yuan is helping emerging market currencies to trade steady against US Dollar.”

Patel added that the pullback in Indian rupee may get extend till 69.60 in future before it starts retracing back to 70. “Any serious correction in Dollar can only come if DXY manages to trade below 95 level,” said Patel. In the domestic equity markets, the BSE benchmark Sensex surged nearly 300 points to quote a fresh high of 38,240.55 in intra-day trade. The broader NSE Nifty too breached the 11,500-mark for the first time and traded at a high of 11,539.45 points. On Friday, foreign institutional investors (FIIs) bought stocks worth of Rs 147.31 crore, while domestic institutional investors (DIIs) accumulated stocks worth a net of Rs 151.89 crore.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition