Rupee extends gains; surges past 70/$ mark for the first time since Aug 27

Forex dealers said the greenback's weakness against some currencies overseas aided the domestic currency.

The rupee, on Thursday, surged past 70 mark against the US dollar for the first time since August 27. At 10:00 am, the domestic unit was trading at 69.95. The currency opened 50 paise higher ta 70.11 againstyesterday's close of 70.61. On Wednesday, the currency strengthened by 17 paise to close at 70.62, as global crude oil prices slipped below the 60$ per barrel mark amid a smart recovery in domestic equity markets.

Forex dealers said the greenback's weakness against some currencies overseas also aided the domestic currency.

"The rupee resumed its uptrend ahead of the important G20 meeting scheduled during this weekend. Further move in the Indian currency is also dependent on the crucial data and events like domestic GDP and fiscal deficit, US GDP and FOMC minutes, scheduled on November 30," said V K Sharma, Head PCG & Capital Markets Group, HDFC Securities.

In the money market, Government bonds jumped on Wednesday sharply owing to a sustained decline in oil prices as well as buying support from the central bank. They are further expected to rally amid a fall in US yields and lower oil prices.

US markets

On the global front, Asian stocks advanced on Thursday, tracking a surge on Wall Street, after the chairman of the US Federal Reserve suggested it may nearing an end to its three-year rate tightening cycle, boosting interest in riskier assets. 

The dollar struggled and US Treasury yields dipped after Jerome Powell said on Wednesday that US policy rates were “just below” neutral, less than two months after saying rates were probably “a long way” from that point.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8 per cent, said a Reuters report.