Money Market News: Rupee earned 26 Paths in early trading, reaching 85.54
The rupee praised the 26 Pas to 85.54 in early trading on Wednesday, backed by strong foreign capital inflows, weak dollar and lower crude oil prices.
According to forex traders, the rally was driven by optimistic macroeconomic data and a 90-day probation for U.S. reciprocity tariffs, which boosted foreign investors’ sentiment and led to increased purchases of domestic stocks.
In the interbank foreign exchange market, the rupee opened at 85.66 and further rose to 85.54 in early meetings, an increase of 26 Paces from the previous closing. The rupee rose by 85.80 higher on Tuesday after rupee rose 58 paise on Friday. (The market closed on Monday for Dr. Babasaheb Ambedkar Jayanti.)
Meanwhile, the U.S. dollar index (the Green Guard, which measures the six major currencies baskets) fell 0.47% to 99.49, the last level on March 1, 2022.
Brent crude also fell 0.36%, reaching a four-year low of $64.44 per barrel in futures trading – a level previously hit in April 2021.
Stock Market Summary
Despite weaker trends in Asian markets and ongoing concerns over U.S. trade tariffs, Indian stocks remain cautiously open. However, both benchmarks start with green – the Nifty50 is slightly higher at 23,344.1, while Sensex is up 262 points in the Open.
Foreign Institutional Investors (FII) remain bullish with net assets of Rs 60,657.8 crore, according to stock exchange data.
On the economic side, recent government data provide encouraging signs. Wholesale price inflation fell to a six-month low of 2.05% in March as prices of vegetables and other essential foods fell. Retail inflation also showed improvement, falling to a nearly six-year low of 3.34%, driven in large part by mitigating costs for vegetables and protein-rich foods.
Apart from the positive momentum, India's export record saw a modest recovery – March fell for four consecutive months, up 0.7% in March to $41.97 billion. Overall, the country's total exports of goods and services hit an all-time high of $820 billion in the last fiscal year, reflecting resilience in the face of global economic uncertainty.
(Input with PTI)
