The rupee opened higher by eight paise at 66.85/$ as against the previous close of 66.93/$. The rupee opened higher against the dollar, tracking a recovery across Asian assets as better-than-expected economic data out of China propped up risk appetite.
Asian markets opened on a pessimistic note as losses over the last 3 days have hurt sentiment even as the Dow Jones index recovered most losses overnight. This week has seen brutal cuts on equity markets globally as investors contend with weak China data, weak start to earnings in the US & now almost 70% probability of rate hike by the Federal Reserve.
Wall Street closed down on Thursday. The Dow Jones industrial average was down 45.26 points, or 0.25% to 18,098.94, the S&P 500 lost 6.63 points, or 0.31% to 2,132.55 and the Nasdaq Composite dropped 25.69 points, or 0.49% to 5,213.33.
Strength in the US$ & rising bond yields are the other negatives being priced in by global markets. However with corrections being part of the course for markets, this would be a good opportunity to buy as underlying fundamentals indicate strength with emerging markets being best proxy to bullishness in energy & commodities with oil & metals hitting fresh 52 week highs.
On the economy front, India’s retail inflation eased sharply to 4.31% in September, the slowest in more than a year, from 5.05% from August, mainly on account of a sharp fall in food prices.
Finance Minister Arun Jaitley blamed the successive governments' inability to bring in reforms in the infrastructure and power sectors for the rising non-performing assets in the core segments.