Rupee Trades Higher By 46 Paise Against US Dollar In Early Trade

| December 7 , 2018 , 12:24 IST

The Indian rupee traded higher by 46 paise at 70.53 per dollar on Friday. On Thursday, it had closed at 70.90 per dollar.

According to media reports, Forex traders said, increased selling of the American currency by exporters and banks and sustained foreign fund inflows also supported the domestic currency.

Fueling the risk appetite was weak oil prices, which were pulled down by OPEC's decision to delay a final decision on output cuts.

“Rupee weakened sharply against the US dollar ahead of the important OPEC meeting that was scheduled last evening. In the second half of the session rupee rose after oil prices came under pressure following OPEC’s decision to delay a final decision on output cuts, awaiting support from non-OPEC heavyweight Russia,” said Motilal Oswal, an Indian businessman.

He added, “The declines came after crude slumped by almost 3% ending a meeting without announcing a decision to cut crude supply, instead of preparing to debate the matter today.”

ALSO READ: Sensex Fumbles After Early Gains, Rupee Up Against Dollar

On Thursday, the rupee fell by 44 paise against the dollar to close at 70.90. The local unit also gathered momentum following easing crude oil prices.

India imports nearly 80 per cent of its total oil needs and a fall in dollar help drive down the value of its imports.

Besides, fund inflows by foreign investors also supported the domestic unit. Foreign portfolio investors (FPIs) net bought shares worth Rs 72.47 crore Thursday, while domestic institutional investors (DIIs) offloaded equities to the tune of Rs 389.78 crore, provisional data showed.