The rupee traded five paise higher at 68.52 against the US dollar during early morning trade on Wednesday following a weakness in the US dollar against other currencies overseas.
The rupee traded five paise higher at 68.52 against the US dollar during early morning trade on Wednesday following a weakness in the US dollar against other currencies overseas. Amid weakness in the dollar, increased selling of the US currency by exporters and banks also added to the firmness in the rupee, reported PTI. On Wednesday, the rupee opened 10 paise higher at 68.47 against the US dollar at the Interbank Foreign Exchange from its previous close.
The upward trend of the rupee was influenced by selling of the American currency by exporters and banks and a higher opening in the domestic equity market, PTI reported forex dealers as saying. The rupee had gained 23 paise to end at 68.57 against the greenback on Tuesday on fresh dollar selling by exporters and corporates.
In the domestic equity markets, the benchmark BSE Sensex rose by 59.33 points to a high of 35,437.93 in opening trade on Wednesday. However, investor sentiment turned weak after most Asian stocks declined, leading the Sensex to give up almost 68 points to trade in the red.
Oil prices were higher on Wednesday following a report of tightening US fuel inventories as well as looming US sanctions against Iran, which threaten to cut supplies to an already tight market despite pledges by producer cartel OPEC to raise output to make up for the disruptions, according to a Reuters report. US West Texas Intermediate (WTI) crude futures rose 46 cents, or 0.6 percent, to $74.60 a barrel at 0343 GMT. Brent crude futures were changing hands at $78.10 per barrel, up 34 cents, or 0.4 percent, from their last close.