Indian rupee Vs US dollar: Rupee trades over 66-mark for third time in row, here's why
Rupee Vs dollar: Indian rupee was trading at 66.225, above 0.018 paisa or 0.03%, against the US benchmark dollar index.
Indian rupee was trading over 66-mark for the third consecutive day today against the US benchmark dollar index in the interbank forex market. In the early opening, the rupee weakened by 4 paise to 66.16 against the US dollar amid foreign capital outflows.
At around 1132 hours, the Indian rupee was trading at 66.225, above 0.018 paisa or 0.03%, against the US benchmark dollar index.
Forex dealers in a PTI report said that sustained demand for the American currency from importers and dollar strength against other currencies overseas, bolstered by rising US bond yields, weighed on the domestic unit.
According to Deutsche Bank`s macro strategist, Alan Ruskin, traditionally the dollar had a slight negative correlation with oil, mostly because the dominant causation goes from dollar weakness to rising oil prices, a Reuters report said.
Last week, the domestic unit had crashed below the key 66 level to close at a 13-month low of 66.12 against the American unit, hit by a resurgent dollar, firming crude prices and a more hawkish tone of the Reserve Bank.
Also, foreign portfolio investors (FPIs) on Friday sold shares worth Rs 21.02 crore on net basis, as provisional data.
Meanwhile, the benchmark BSE Sensex today was trading at 34,493.78, above 79.72 points or 0.23%, however in early opening, the index rose by 78.11 points, or 0.22% to 34,493.69. On the other hand, Nifty 50 was trading at 10,596.35 higher by 32.30 points or 0.31%.