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Rupee Extends Gain To 7th Day, Edges Past 71 Mark Against Dollar: 10 Points

Rupee Extends Gain To 7th Day, Edges Past 71 Mark Against Dollar: 10 Points

Rupee vs dollar: As of Thursday’s close, the rupee is down 1.96% against the dollar so far this year

Continuing its upmove for a seventh straight day, the rupee gained as much as 26 paise to edge past the 71 mark against the dollar on Friday. After starting the session at 71.01, the rupee gained further ground to touch 70.88 against the greenback in morning. Weakness in global crude oil prices and foreign fund inflows amid a steady dollar supported the rupee, say analysts. The latest bout of rise in the rupee comes after macroeconomic data fuelled hopes of further easing of monetary policy by the central bank going forward.
Here are 10 things to know about the movement in rupee-dollar (INR vs USD) today:
  1. The rupee moved in a range of 70.88-71.03 against the greenback in the first half of the session. (Also read: Rupee unlikely to regain lost ground in coming year, says poll)
  2. Crude oil prices fell on Friday with the global benchmark set to finish the week lower after days of swinging back and forth. Brent crude futures were last seen trading 0.3 per cent lower at $60.20 per barrel.
  3. Foreign institutional investors net purchased Indian equities worth Rs. 783.55 crore on Thursday, provisional data from the National Stock Exchange showed.
  4. Easing of trade tensions between the US and China strengthened Asian currencies. News that the world’s two largest economies would return to the negotiation table in early October was cheered by markets.
  5. Investors rolled back short positions on most Asian currencies over the past two weeks, a poll by news agency Reuters showed, as risk appetite picked up after the US and China agreed to restart trade talks.
  6. The poll was closed on Wednesday, before a surprise announcement from US President Donald Trump delaying scheduled tariff hikes on billions of dollars worth of Chinese goods.
  7. Analysts say emerging currencies are tracking a surge in yuan in past few days amid easing of US-China trade conflict and slowing global growth.
  8. “Since the beginning of this year, the ongoing US-China trade war led to tremors in rupee. The appreciation of 2.13 per cent in the rupee over past few days, where it started rising taking the support of 72.4025, is on account of both global and domestic factors,” Rahul Gupta, currency research head, Emkay Global Financial Services, told NDTV.
  9. “Globally, hints of US-China trade truce gave rise to risk appetite and emerging market currencies. Yuan has appreciated more than 1.50 per cent in the past seven days and we saw the rupee following its footsteps,” he added.