Rupee recovers, opens 35 paise higher against US dollar

Rating agency Fitch on Thursday said it expects the rupee to weaken to 75 against the US dollar by the middle of next year due to a widening CAD and tighter global financing conditions.

Staging smart recovery, the rupee on Friday opened 35 paise higher at 70.55 against the US dollar amid fall in oil prices ahead of the crucial OPEC meet outcome, due later in the day. The domestic unit on Thursday depreciated by 44 paise to close at 70.90. 

Meanwhile, rating agency Fitch on Thursday said it expects the rupee to weaken to 75 against the US dollar by the middle of next year due to a widening current account deficit (CAD) and tighter global financing conditions.

Oil prices fell on Friday, pulled down by OPEC’s decision to delay a final decision on output cuts, awaiting support from non-OPEC heavyweight Russia. International Brent crude oil futures fell below $60 per barrel early in the session, trading at $59.50 per barrel at 0144 GMT, down 56 cents, or 0.9 per cent from their last close.

In the stock markets, Asian shares struggled amid speculation the Federal Reserve might be “one-and-done” with US rate hikes. MSCI’s broadest index of Asia-Pacific shares outside Japan nudged up 0.4 per cent, though that followed a 1.8 per cent drubbing on Thursday.

Back home, benchmark indices extended their decline on Thursday for a third session in a row led by weak global cues. Broader market indices also ended down in tandem with benchmarks. The Nifty settled at 10,601, down 181 points or 1.7 per cent for the day. 

Foreign institutional investors (FII) were net buyers to the tune of Rs 7.77 billion on December 5, 2018. FIIs have been net sellers of the more than Rs 1.53 billion in December 2018.