On account of an uptick in dollar selling by exporters and banks, the Indian rupee started the second day of the year 2018 on a bullish note gaining 0.23 per cent from its Monday's trading close. The currency traded at 63.53 on Tuesday while also achieving 63.52 during the day. Interestingly, rupee gained by almost 6 per cent against dollar in 2017. The last time the domestic currency traded at 63.52 against dollar was on July 22 in 2015. The American dollar index has been sliding for the past one year owing to higher economic growth registered by major economies and their stricter monetary policies.
Earlier on Tuesday, the domestic currency opened marginally up at 63.67 and jumped 6 paise to a fresh five-month high of 63.62 at the interbank foreign exchange market on dollar selling by exporters. The domestic currency gained by almost 19 paise against dollar on Monday. Rupee has been strengthening against the US dollar for the past few days.
The stock markets also opened strong but lost some of the gains later. The BSE Sensex was trading up 48.77 points or 0.14 per cent at 33,861.52 after hitting a high of 33,964.14. Also, the US dollar fell against major currencies as traders booked profit after passage of US tax bill and expectations of monetary tightening by central banks supported the euro and the British pound.
With 0.4 per cent decline from its previous close of 92.24 in the Bloomberg Dollar Spot Index, a score of Asian currencies gained significantly during the day. Malaysian ringgit was up 0.67%, Singapore dollar 0.59%, South Korean won 0.5%, Thai baht 0.44%, China offshore 0.42%, Taiwan dollar 0.34%, Japanese yen 0.34%, Indonesian rupiah 0.30%, China renminbi 0.20%, reported Mint.
With PTI inputs