Continuing its rising spree, the rupee appreciated another 50 paise to breach the 70 per dollar-mark in opening trade on Wednesday, December 19, 2018, on persistent drop in crude prices amid fresh foreign fund inflows and sustained selling of the American currency by exporters and banks.
Besides, the dollar’s weakness against some currencies overseas ahead of U.S. Federal Reserve’s policy meet outcome later in the day also supported the rupee.
The domestic unit opened with strength at ₹70.05 at the Interbank Foreign Exchange and advanced further to 69.87 against the U.S. dollar.
Brent crude, an international benchmark, dropped 4.2% lower to $57.07 per barrel Tuesday, a 14-month low.
The rupee on Tuesday rallied by a whopping 112 paise, its best single-day gains in over five years, to settle at 70.44 against the U.S. dollar as softening crude oil prices eased concerns over India’s current account deficit expansion.
Foreign institutional investors (FIIs) bought shares worth ₹144.76 crore on Tuesday, as per provisional data.
Meanwhile, the benchmark BSE Sensex rose 112.32 points, or 0.31%, to 36,459.09 in opening trade.