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Rupee gains 25 paise to open at 72.06/US dollar on calmer oil prices

Rupee gains 25 paise to open at 72.06/US dollar on calmer oil prices

Rupee gains 25 paise to open at 72.06/US dollar on calmer oil prices
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By Aastha Agnihotri  Nov 15, 2018 9:21:54 AM IST (Published)

Indian rupee opened stronger against the US dollar on Thursday on easing worries over expanding current account deficit as global crude oil prices hovered near one-year lows.

Indian rupee opened stronger against the US dollar on Thursday on easing worries over expanding current account deficit as global crude oil prices hovered near one-year lows.

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The local unit was also supported by weakness in the greenback against the pound and euro after Britain's prime minister won cabinet approval for her draft Brexit plan.
At 09:10 AM, the rupee was trading at 72.10 a dollar, up 21 paise from its Wednesday’s close of 72.31. The home currency opened at 72.06 and touched a high and a low of 72.03 and 72.13 a dollar, respectively.
Oil prices fell on Thursday, pressured by rising supply going into a market in which consumption is expected to slow down. Front-month Brent crude oil futures were trading at $65.90 per barrel at 0254 GMT, down 22 cents, or 0.3 percent, from their last close.
India imports nearly 80 percent of its total oil needs and a fall in price would drive down the value of its imports. A fall in oil prices by $10 per barrel helps reduce the current account deficit by $9.2 billion, according to market experts.
Besides, fund inflows by foreign investors and the US dollar’s weakness against some currencies overseas also supported the domestic unit.
The dollar index, a gauge of the currency's performance against six major peers, traded at 96.97, off a 16-month hit on Monday.
Foreign institutional investors (FIIs) net bought shares worth Rs 277.38 crore Wednesday, as per provisional data.
The rupee is the worst performing emerging market currency having lost almost 15 percent since January this year. Between April and September the rupee has plummeted more than 7 percent to the dollar.
In debt markets, the yields on the 10-year government bonds rose 0.06 percent to 7.74 percent after closing at 7.73 percent on Wednesday. Bond yields and prices move in opposite directions.
 
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