The currency has been dogged by concerns over fallout from widespread bushfires that have increased expectations of a rate cut by the country's central bank as soon as next month," Ajay Kedia, Managing Director and Research Head, Kedia Advisories.
The Indian rupee on Friday opened 5 paise lower at 70.99 against US dollar after the signing of an initial trade deal between US and China. At the interbank foreign exchange, around 10.30 AM, the rupee was trading at 70.96 a dollar, down 0.03 per cent against the previous close of 70.94 a dollar. “Rupee remained in range after signing of the Phase-1 trade deal between the US and China. Beijing and Washington touted the Phase 1 deal, signed at the White House, as a step forward in resolving their bitter trade dispute. The currency has been dogged by concerns over fallout from widespread bushfires that have increased expectations of a rate cut by the country’s central bank as soon as next month,” Ajay Kedia, Managing Director and Research Head, Kedia Advisories said.
Earlier, on January 16, the Indian rupee fell 11 paise to end at 70.93 against the US dollar due to strengthening crude oil prices and dollar demand from importers. The S&P BSE Sensex gained 115 points, or 0.27 per cent, at 42,047 points, while the Nifty 50 index was trading at 12,379 points, up 0.19 per cent or 23.45 points in Friday’s trade. On the Sensex pack, Bharti Airtel and Reliance Industries were the top gainers. While the shares of Vodafone Idea fell as much as 39.30 per cent to hit an intraday low of Rs 3.66 apiece on BSE.
Foreign portfolio investors (FPIs) were sellers of domestic stocks to the tune of Rs 395 crore on Thursday, according to data available with NSE while DIIs were net sellers to the tune of Rs 185 crore.
Oil prices were steady on Friday as reports of sluggish economic growth in China, the world’s biggest crude importer, raised concerns about future fuel demand and countered optimism from the signing of the Sino-U.S. trade deal earlier in the week, as per the Reuters news report.