Rupee snaps 3-day losing streak; rises 21 paise to 69.70 vs USD

The rupee Tuesday appreciated by 21 paise to close at 69.70 against the US dollar as easing crude prices and a weak dollar ahead of the US central bank's meeting helped the currency snap its three-day losing streak.

Forex dealers said the selling of the American currency by exporters and gain in other Asian currencies also supported the rupee.

The US dollar fell against its major rivals before the US Federal Reserve's meeting amid expectations that the central bank may signal a rate cut. The dollar index dropped 0.1 per cent to 97.43 Tuesday.

Brent crude futures, the global oil benchmark, eased 0.46 per cent to USD 60.66 per barrel.

 

At the interbank foreign exchange market, the rupee opened at 69.82 per dollar and advanced to a high of 69.63 during the day. It finally settled at 69.70, up 21 paise over its last close.

The domestic currency had settled at 69.70 against the US dollar Monday.

"Rupee has broken the three-day losing streak by appreciating 21 paise against the US dollar taking a cue from other strong Asian currencies. The weak trend of Brent crude prices has also augured well for domestic currency," said V K Sharma, Head-PCG & Capital Market Strategy, HDFC Securities.

"Market participants are waiting for the monetary policy of Federal Open Market Committee (FOMC), Bank of England and Bank of Japan, scheduled this week. The reaction of FOMC meeting outcome would be seen in the Indian currency market on Thursday," he added.

Meanwhile, the 10-year government bond yield was at 6.82 per cent Tuesday.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 528.91 crore equities and debt securities Monday, provisional data showed.

BSE benchmark index Sensex Tuesday snapped a four-day losing streak. The BSE gauge swung nearly 300 points before settling 85.55 points, or 0.22 per cent, higher at 39,046.34. The broader NSE Nifty closed 19.35 points, or 0.17 per cent, higher to close at 11,691.50.

Meanwhile, Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.8362 and for rupee/euro at 78.2729. The reference rate for rupee/British pound was fixed at 87.8898 and for rupee/100 Japanese yen at 64.31.