₹ logs 3rd straight gain, soars 35 paise to 2-week high on crude comfort
Mumbai: The rupee continued its unabated rise for the third-straight day, surging by 35 paise to end at a new two-week high of 67.43 against the US dollar after a surprise crash in crude prices quickly faded near-term trade deficit and inflation worries.
The domestic currency market heaved a sigh of relief following a significant easing in crude prices that will lead to considerable improvement in India's position on fiscal front, bolstering investor confidence towards the home currency.
Global crude oil collapsed after Saudi energy minister Khalid al-Falih endorsed prior comments from his Russian counterparts calling for self-imposed output curbs to be relaxed, perhaps as soon as June.
The meltdown could be a blessing in disguise for India as gradual uptick in inflation made investors jittery and they fear the Reserve Bank of India (RBI) may shift its stance from neutral to tightening which led to hardening of yield.