Rupee halts 4-day winning streak, back to 70/$ as crude oil surges

The domestic currency on Friday strengthened by 27 paise to close at a four-month high of 69.58 against the greenback.

The rupee on Monday slipped 29 paise to open at 69.87 against the US dollar as crude oil prices surged after the United States and China agreed a truce in their trade conflict and ahead of a meeting by producer club OPEC this week that is expected to result in a supply cut. Minutes later, the home unit depreciated further and touched the 70-mark per dollar. At 09:17 am, the rupee was trading at 70.05. 

The domestic currency on Friday strengthened by 27 paise to close at a four-month high of 69.58 against the US currency, extending gains for a fourth day in a row aided by easing crude oil prices and firm stock markets.

Traders said sustained foreign fund inflows, easing crude oil prices and a smart recovery in domestic equity markets also aided the domestic currency.

In the equity market, benchmark indices Sensex and Nifty pared last week’s losses and ended the November month on a positive note. The Nifty settled at 10,877, up 350 points or 3.3 per cent over the week. Broader markets relatively underperformed as the Nifty midcap rose 0.9 per cent while small cap remained unchanged.

FPI inflows hit a 10-month high of Rs 122.60 billion in November due to falling crude oil prices and sharp rupee appreciation.

On the global front, Asian shares rallied on Monday after US and Chinese leaders brokered a truce in their trade conflict, a relief for the global economic outlook and a tonic for emerging markets.