The rupee jumped against the US dollar in the opening trade on Wednesday, a day after the currency closed at a nearly six-month low of 71.40 against the American unit as global market turmoil drove investors to safe havens.
At 09:10 AM, the rupee was trading at 70.85 a dollar, up 55 paise from its Tuesday’s close of 71.40. The home currency opened at 70.93 and touched a high and a low of 70.90 and 71.00 a dollar, respectively.
In the currency market, the dollar continued to trade lower against the yen as markets largely dismissed US President Donald Trump's trade concession.
News the United States would delay some tariffs supported Asian stocks, but optimism in the currency market quickly faded on broader concerns there are no quick solutions to the trade row, which economists say is dragging on China’s economy and threatening global growth, reported Reuters.
The dollar fell 0.41 percent to 106.31 yen in Asia.
In commodity markets, oil prices fell on Wednesday after industry data showed U.S. crude inventories unexpectedly rose last week.
Brent crude was down 35 cents, or 0.6 percent, at $60.95 a barrel at 0116 GMT, after rising 4.7 percent on Tuesday, the biggest percentage gain since December.
Forex traders said the trigger for the rupee going forward would be CPI data, any spurt on US-China trade war and geopolitical tensions between India-Pakistan.
Foreign investors sold Indian equities worth Rs 638.28 crore on a net basis on Tuesday, as per exchange data.
In debt markets, the yields on the 10-year government bonds were up 0.41 percent to 6.55 percent from its previous close of 6.54 percent. Bond yields and prices move in opposite directions.
First Published: IST