The Indian rupee rises from 17 to 70.62 as a result of lower crude prices

MUMBAI: The Indian rupee has strengthened 17 pesetas to close at 70.62 against the US dollar on Wednesday, while world crude oil prices have dropped below $ 60 a barrel in the context of a smart recovery of domestic stock markets.

Forex brokers have said the weakness of the greenback versus some foreign currencies has also helped the national currency.

On the interbank foreign exchange market (Forex), the rupee opened down to 70.88, but quickly recovered the lost ground and reached a peak of 70.58.

The national unit, however, reduced its gains and settled the day at 17.65 peses against 70.62 US dollars. The rupee had recovered by 8 pesetas to close at 70.79 against the US dollar on Tuesday.

Brokers have indicated that the uptrend in the stock market and the decline in crude oil prices have also supported the upward movement of the rupee.

"The rupee has resumed its upward trend ahead of the important G20 meeting scheduled for this weekend.The pursuit of the Indian currency's evolution also depends on crucial data and is still in the offing." events such as domestic GDP and budget deficit, US GDP and FOMC minutes, scheduled for November 30, "said VK Sharma, head of the PCG & Capital Markets Group, HDFC Securities.

On a worldwide basis, Brent crude, the international benchmark, traded at 0.53% at $ 59.89 per barrel.

The Senbad for BSE advanced for the third consecutive session on Wednesday, gaining more than 200 points on the short hedge before the derivatives expire in November and the positive global indices. In a similar move, the Nifty NSE in the broad sense has recovered the level of 10,700.

At the same time, foreign funds bought shares worth Rs 811.52 billion, while DII bought shares for Rs 31.21 billion on Tuesday, according to preliminary data. .

"Speculation could have caused a fall in the currency," the SBI Ecowrap said in its report, adding that "the constant rise in crude prices since July has increased the speculative activities on the foreign exchange market that could have been avoided through a vague / proactive strategy the measures ".

The 10-year government bond yield dropped 9 basis points to 7.64, its lowest level in seven months, after the Reserve Bank of India announced additional purchases of 40,000 billion rupees in open market operations in December.

The India Private Ltd financial reference index (FBIL) set the reference rate of the rupee / dollar at 70.6881 and 79.8752 rupees / euro. The reference rate for the rupee / pound was set at 90,1368 and for the rupee / 100 Japanese yen at 62.08.