Indian Rupee: Weakens In Early Trades

Indian Rupee: Weakens In Early Trades

Feb 08, 2018 04:02 IST capital market

The Indian rupee weakened against the dollar in early trades on Thursday, 08 February 2018 owing to increased demand for the US currency from importers amid fresh foreign funds outflow. However, a weak dollar in global markets helped the rupee limit some of its losses.

The domestic currency opened at Rs 64.38 against the dollar and moved in range of 64.29 to 64.38 in early deals before trading at 64.32. Foreign investors pulled out a net Rs 1,022.50 crore from stocks yesterday. Yesterday, the rupee had lost 4 paise versus the dollar to end at 64.28 after RBI sounded a more hawkish tone amid upside risks on inflation.

Domestic benchmark indices edged higher in early trade tracking positive trading in Asian bourses. At 9:16 IST, the barometer index, the S&P BSE Sensex, was up 52.55 points or 0.15% at 34,135.26. The Nifty 50 index advanced 19.35 points or 0.18% at 10,496.05.

Overseas, most Asian stocks edged higher despite weaker finish on Wall Street. Chinas trade surplus shrank in January on huge imports surge, data released today, 8 February 2018 showed. Trade surplus for January, in Yuan terms, came in at CNY 135.80 billion. US stocks declined yesterday, 7 February 2018, after trading in a wide range again, as interest rates climbed back toward multi-year highs.

Meanwhile, the dollar was off recent lows against major rivals on Thursday, benefiting from the euros weakness and higher U.S. yields but capped by concerns about recent equity market volatility. Against a basket of six major rival currencies, the dollar was steady on the day at 90.267 (DXY), probing its highest levels in two weeks.

Powered by Commodity Insights

Related Story