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Rupee slips 6 paise to 74.36 despite weak dollar, positive equities

The local unit opened at 74.30 at the interbank forex market, although, lost ground and touched 74.36, registering a fall of 6 paise over its previous close of 74.30 per dollar

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.15 per cent to 92.87 The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.15 per cent to 92.87

Indian rupee, the currency benchmark, fell 6 paise to 74.36 per dollar on Thursday's opening deals as investors awaited fresh cues from the US central bank speech and the Reserve Bank of India.

The local unit opened at 74.30 at the interbank forex market, although, lost ground and touched 74.36, registering a fall of 6 paise over its previous close of 74.30 per dollar.

Forex traders said foreign fund inflow, positive domestic equities and weak US dollar supported the domestic currency. Although, investors reamined cautious ahead of Reserve Bank of India Governor Shaktikanta Das' address.

"RBI Governor Das is scheduled to speak at an event at 10:30 am. Given the recent turmoil in the bond markets, markets would watch for comments on how the RBI would ensure that the borrowing for current fiscal goes through in a non-disruptive manner," said Abhishek Goenka, Founder and CEO, IFA Global.

He added further that "despite the announcement of open market operation (OMO) twist, the nervousness in the bond markets continues. The yields are now higher than levels before the twist was announced.

Meanwhile, global investors also awaited with caution on US Fed Chairman Jerome Powell's view on monetary policy and the economic condition. Fed Chairman Jerome Powell will speak on Thursday during a virtual version of the Fed's annual Jackson Hole, Wyoming, conference. Powell is expected to outline what could be the central bank's most active efforts ever to spur inflation back to a healthy level.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.15 per cent to 92.87.

On the domestic equity market front, domestic benchmarks Sensex and Nifty traded on a bullish note on Thursday, the F&O expiry day, amid positive global equities. Extending gains for the fourth straight session, the S&P BSE Sensex traded 220 points higher at 39,293. The Nifty 50 index was rising 59 points higher at 11,609.

Foreign portfolio investors (FPIs) bought shares worth Rs 1,581.31 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 1,194.62 crore in the Indian equity market on Wendesday, provisional data showed.

Oil prices steadied on worries about the demand outlook but was supported by US producers shutting output in Gulf of Mexico ahead of Hurricane Laura. Brent crude futures, the global oil benchmark, rose 0.24 per cent to USD 45.75 per barrel.

In India, the death toll touched 59,612 and total coronavirus cases reached 32.34 lakh as of Tuesday. Worldwide, there were 240 lakh confirmed cases and 8.23 lakh deaths from COVID-19 outbreak.

Stocks in news: ICICI Bank, HAL, Allcargo Logistics, Gillette, Siemens

Gold price slips after two days; silver rates at Rs 66,700