Due to high crude oil prices and withdrawals of foreign funds, the rupee fell 15 paise to 88.65 against the dollar in early trading on Wednesday. Forex traders reported that the domestic unit was supported at lower levels by renewed confidence for the trade agreement between the US and India.
The rupee began trading at 88.61 against the US dollar in the interbank foreign currency market before falling 15 paise to 88.65. The rupee’s value in relation to the US dollar was 88.50 on Tuesday. The MSCI Review could lead to favorable foreign fund inflows, according to forex dealers.
Fortis Healthcare, GE Vernova T&D India, One 97 Communications (Paytm), and Siemens Energy India have been added to the Global Standard Index by global index provider MSCI.
President Donald Trump has stated that the US and India are “pretty close” to achieving a “fair trade deal” and that he will eventually reduce the tariffs on Indian exports. The US president has expressed hope to finalize the planned bilateral trade agreement with India for the second time in less than two weeks.
The dollar index, which measures the strength of the US dollar relative to a basket of six other currencies, was up 0.06 percent at 99.50. In futures trading, Brent crude, the world’s benchmark for oil, was down 0.26 percent at USD 65 per barrel. Regarding the local stock market, the Nifty increased 144.05 points to 25,839 and the Sensex increased 502.82 points to 84,374.14 in early trading. Exchange data shows that on Tuesday, foreign institutional investors sold stocks valued at Rs 803 crore.
