Rupee opens 33 paise up at 73.80 against dollar
The local currency advanced 9 paise to end at 74.13 per dollar on Thursday .
The local currency advanced 9 paise to end at 74.13 per dollar on Thursday after falling to a fresh lifetime low in intra-day trade amid a sharp selloff in global markets.
According to Motilal Oswal Financial Services, rupee rose primarily on back of weakness in the greenback after US President Donald Trump criticised the Federal Reserve for raising rates aggressively. US president said that the Fed is making a big mistake and being too tight in its policy and that led a big correction in US equities.
The Fed has raised interest rates three times this year and is largely expected to hike once more before year end. On the domestic front, government is expected to take further steps to increase import duties on various products to curb a ballooning current-account deficit and a falling rupee. On the other hand, RBI is also intervening to curb the volatility in the currency.
In the recent past, RBI has changed its tack in its foreign exchange intervention policy, increasing its participation in the derivatives market in relation to the spot market in an apparent attempt to avoid a cash crunch in the banking system.
“Today, USDINR pair is expected to open at 74.20(Oct) and quote in the range of 73.70 and 74.30,” Motilal Oswal Financial Services said in a report.
Softening crude oil prices and the some weakness in dollar against other currencies provided support to rupee. In the international market, Brent crude price slipped from $84.98 on October 1 to $80.71 on October 12.
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