Indian rupee appreciated 44 paise to 79.30 against the American dollar in the opening trade on Wednesday, mainly on account of foreign fund inflows. Besides, a positive opening in the domestic equities amid moderating inflationary pressures helped investor sentiments, according to forex dealers.
At the interbank foreign exchange, the Indian rupee opened sharply up at 79.32 against the dollar, then gained further closed to 79.30, registering a rise of 44 paise over the previous close. In the previous session on Friday, the rupee declined 12 paise to close at 79.74 against the U.S. dollar. Meanwhile, global oil benchmark Brent crude futures advanced 0.34 percent to USD 92.65 per barrel.
The global benchmark, Brent crude, recovered somewhat from six-month lows early Wednesday after data showed U.S. stockpiles fell. Forex markets were closed on Monday and Tuesday for Independence Day and Parsi New Year, respectively. The dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.06 percent to 106.44.
Tuesday saw an increase in U.S. Treasury yields as speculation increased that the Federal Reserve will likely maintain its hawkish position despite the July inflation statistics. The July Fed meeting will be released later on Wednesday. The two-year yield is practically at the same level as the 10-year yield, which is higher than where it was before the softer-than-expected U.S. inflation report. Ahead of the Fed meeting, the dollar index was unchanged.