Millennium Post

Rs logs best single day gain this year, surges 56 paise to 67.78 per $

Mumbai: The Indian rupee on Friday clocked its biggest single-session rally, surging by a whopping 56 paise to close at 67.78 against the US dollar amid a rise in local equities and cooling global crude oil prices.
This is the best single-day rise for the home currency since March 14, 2017. The rupee on Friday touched a high of 67.70 in the intra-day trade.
It had closed at 68.34 a dollar on Thursday after bouncing back from an 18-month low.
"Amidst a strength in local equities, rupee continued to recoup the week's losses, with solid gains on Friday. Upcoming GDP data and expectations of good monsoon will seek to cool inflationary fears. Currency contracts' expiry next week also meant that longs were wound down, adding to the pull back in the USD/INR futures," Anand James, Chief Market Strategist at Geojit Financial Services, said.
Forex market witnessed a sudden revival in sentiment towards the mid-session following a sharp pullback in global crude prices, threatening to upset India's macroeconomic balance this fiscal and derail the worlds fastest-growing large economy.
Global crude prices fell sharply by over 2 per cent, despite multiple production outage fears in major producing countries, either real or prospective, including Venezuela, Libya and Iran.
Brent crude futures, an international benchmark, is trading lower at $77.06 a barrel in early Asian trade.
Hardening concerns over fiscal deficit and current account deficit amid rising global crude oil prices have been weighing on the rupee.
Over the past couple of weeks, the rupee has been depreciating sharply against the US dollar.
The big driving part of the rupee's under-performance was largely due to a sudden spike in global crude prices and country's worsening trade deficit against the backdrop of a potentially more hawkish Federal Reserve amid escalating global trade war tensions.
A mix of domestic and external factors too made the fundamentals unfavourable for the rupee.
The rupee has been the worst performing Asian currency this year after strengthening over 6 per cent in 2017.
At the Interbank Foreign Exchange (forex) market, the rupee opened higher at 68.28 from Thursday's close of 68.34 on sustained selling of the greenback by exporters and banks.
The home currency kept ascending to hit an intra-day high of 67.70 in mid-afternoon deals before ending at 67.78, revealing a smart rise of 56 paise, or 0.82 per cent.
This is the second straight rise for the local unit.
The RBI, meanwhile, fixed the reference rate for the dollar at 68.2600 and for the euro at 79.8847.
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