The Indian rupee weakened by 3 paise to 64.07 against the US dollar in opening trade on Wednesday morning due to some demand for the American currency from importers and banks. According to PTI reports, forex dealers say that a weak dollar in overseas markets and early gains in stock markets capped the rupee losses. The dollar was trading lower against Japanese yen in Asian trade today.
Yesterday, the rupee had lost 55 paise or nearly 1 per cent — its biggest single-day crash in eight months — to end at a fresh two-week low of 64.04 against the US dollar, hit by a double whammy of rising global crude prices and worsening trade deficit.
The trade deficit in the month of December widened to $14.88 billions as compared to $10.55 billion during the same period last year after gold imports skyrocketed 72% to $3.39 billion year-on-year. Besides, both exports and imports also rose in the month of December. Exports in the month of December was recorded $27 billion, up 12% year-on-year and imports was recorded $41.9 billion, up 21.1% year-on-year. Oil imports also showed a steep rise, up nearly 35% year-on-year to $10.35 billion. Oil imports last month was recorded at $9.55 billion.
Merchandise exports for December rose 12.36% from a year ago to $27.03 billion. Goods imports last month were $41.91 billion, a gain of 21.12% from a year ago, data from the commerce and industry ministry showed.
Meanwhile, the equity benchmark indices Sensex and Nifty opened flat on Wednesday morning, tracking domestic and global cues. The Sensex was mainly helped by a surge in prices of TCS, Infosys which were up by more than 2% each. After closing at 33,771.05 on Tuesday, the Sensex opened at 34,753.8 on Wednesday morning, while Nifty opened at 10,702 as compared to yesterday’s closing of 10,700.
Earlier, Asian stocks pulled back from record highs, following declines in U.S. counterparts. The dollar declined against most major currencies. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.1 percent to 10,704.50 as of 6:45 a.m. U.S. stocks sank, retreating from all-time highs as commodities producers and industrial shares took a hit with oil and metals in decline.