Rupee rises from record low, recovers 23 paise against US dollar

Rupee rises from record low, recovers 23 paise against US dollar
Highlights

The battered rupee rose 23 paise to 7416 against the US dollar Wednesday after the American currency weakened overseas amid increased selling by exporters Besides, RBIs decision to inject Rs 12,000 crore liquidity into the system through purchase of government bonds on October 11 to meet the festival season demand for funds also supported the recovery in rupee, dealers said

The battered rupee rose 23 paise to 74.16 against the US dollar Wednesday after the American currency weakened overseas amid increased selling by exporters. Besides, RBI's decision to inject Rs 12,000 crore liquidity into the system through purchase of government bonds on October 11 to meet the festival season demand for funds also supported the recovery in rupee, dealers said.

A higher opening of domestic equity markets too aided the recovery in the domestic unit.

The benchmark BSE Sensex rose 110.20 points or 0.31 per cent, to 34,409.67 in opening trade.

At the forex market, the rupee strengthened by 23 paise to quote at 74.16 against the US dollar in early trade on fresh selling of the American currency by banks and exporters.

The rupee slumped by 33 paise to finish at a fresh lifetime low of 74.39 against the US dollar Tuesday on high crude oil prices, strengthening of the greenback and unabated foreign fund outflows. DIIs bought shares worth Rs 1,526 crore, while FIIs pulled out a net Rs 1,242 crore Tuesday, as per provisional stock exchange data.

Meanwhile, to curb the constant falling of Indian Rupee, Modi government is mulling over to involve NRIs. According to a Bloomberg report, the Centre might tap Indians living overseas to lure foreign exchange flows and prop up a sagging rupee. Citing sources, the report claimed that finance ministry and RBI officials are in discussions to chalk out the plan to raise money from NRIs.

The announcement for the same might come later this month, the report claimed.

Indian Rupee has been declined mor ethan 14 percent and has been among Asia's worst peformer. On Tuesday, the rupee fell 0.4 per cent to a record low of 74.3950 per dollar.

Besides, the BSE benchmark Sensex on Wednesday opened in green. Sensex started at 34,493.21 and the Nifty50 index of the National Stock Exchange (NSE) at 10,331.85. At 9:32 AM, Sensex was up by 151.45 or 0.43% to trade at 34,433.12 while Nifty was up by 50.00 or 0.49% to reach at 10,353.25 points.

Among the early gainers were, Hero MotoCorp, Tata Motors, Bajaj Auto, Vedanta, and Maruti Suzuki.

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