The Indian rupee opened marginally higher against the US dollar in early trade on Thursday amid positive opening in the domestic equity market. However, foreign fund outflows and rising crude oil prices weighed on the domestic currency.
At the interbank foreign exchange, the rupee opened at 68.99, then touched a high of 68.92, at an advance of 6 paise over its previous close of 68.98 against the dollar. However, by the afternoon session the domestic currency declined to 69.035 against the US dollar.
Meanwhile, the net investment of equity and debt reported by Foreign Portfolio Investments (FPIs) remained bearish with net selling of Rs 1,393.71 crore from Indian equities while Domestic institutional Investors (DIIs) bought Rs 2,140.26 crore on Wednesday.
Domestic bourses opened on a bullish note Thursday, with benchmark BSE Sensex rallying over 300 points in the early trade, although earsed gains to traded choppy by the afternoon session.
Currently, the 30-share index S&P Sensex trades 22 points lower at 37,825, and the broader index Nifty50 trades 17 points down at 11,254.
Elsewhere in Asia, Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading in the green in their respective early sessions. Equities on Wall Street too ended on a positive note on Wednesday, amidst US S&P closing at all-time highs as tech sector shook off the new regulatory threat.
The euro was trading near a two-month low on Thursday on the currency front, ahead of a European Central Bank meeting that could signal monetary easing as growth in the currency zone falters.
Major global cues that are going to dictate terms to the rupee include the crucial European Central Bank (ECB) policy statement to be released later on Thursday, US second-quarter preliminary GDP print on Friday, and the Federal Open Market Committee (FOMC) meeting on July 31.
Another major event that market participants are betting on is the long-awaited meet between US and China for trade negotiations in Shanghai on Tuesday and Wednesday next week.
Brent crude futures, the global oil benchmark, rose 0.19 per cent to trade at $63.30 per barrel.
Edited by Rupa Burman Roy
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