admin On Thursday the rupee opened 14 paise higher at 70.77 against the dollar due to some selling in American currency by banks and exporters.
The local currency continued to consolidate in the range of 70.70 and 71.30 following lack of cues on the domestic front.
The volatility for the currency will be decided more by global factors than by domestic factors.
Market participants will be focusing on how the Brexit event unfolds from here especially after Boris Johnson’s proposal was rejected in the parliament. The remaining EU countries will now consider the prime minister’s request for an extension, which he was forced to submit after parliament withheld approval for his agreement.
Euro also rose marginally in Wednesday’s session ahead of the important ECB policy statement that will be released today. The expectation is that the central bank could hold rates after cutting deposit rates in its last meeting.
On the other hand, market participants will also keep an eye on the preliminary manufacturing PMI numbers that will be released from the US as well as from the Euro zone.
Domestic bourses opened on a cautious note with benchmark indices Sensex trading 37.52 points higher at 39,096.35 and Nifty higher by 1.15 points at 11,605.25. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell by 0.06 per cent to 97.43.
Market participants said sustained foreign fund outflows weighed on local currency.
Foreign institutional investors remained net sellers in the capital market, pulling out Rs 213.23 crore on Wednesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 0.47 per cent to trade at USD 60.88 per barrel.
The 10-year government bond yield was at 6.52 per cent in morning trade.
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