The rupee opened strong at 69.93 per US dollar on Wednesday from the previous close of 70.13 per US dollar on Monday, mainly on account of sharp fall in crude oil prices.
Rupee vs dollar today: The rupee opened strong at 69.93 per US dollar on Wednesday from the previous close of 70.13 per US dollar on Monday, mainly on account of sharp fall in crude oil prices. The domestic currency gained further strength and was trading at 69.78 a dollar, up 36 paise from the previous close in the early morning trading, according to data available on Bloomberg. On Monday, the rupee recovered by 4 paise to close at 70.14, on lower crude oil prices and dollar’s losses in global markets due to political uncertainty in the US.
On Wednesday, crude oil prices were mixed in thin trading as the US benchmark rebounded, while concern over the global economy’s health continued to overshadow the market in the longer term, Reuters reported. Brent crude oil futures fell 16 cents or 0.32% at $50.31 a barrel, after falling 6.2% in the previous session to $50.47 a barrel. This is the weakest decline in the crude oil prices since August 2017.
The US dollar was also trading lower, on account of rising concerns over tension between the White House and the Federal Reserve and the partial US government shutdown and, the Reuters reported.
Meanwhile, the major stock indexes fell more than 2% Monday, nudging the market closer to its worst year since 2008. Stocks are also on track for their worst December since 1931, during the depths of the Great Depression, Reuters reported.
In India, both Sensex and Nifty also opened lower on Wednesday morning tracking weak global cues. Sensex tanked 211 points to 35,258.97, while the broader Nifty 50 was trading near 10,600. HUL share price plunged by nearly 2% to 1,750.80, and Sun Pharma share price tanked by more than 1.2%.