Rupee does U-turn, up 10 paise at 68.40 a US dollar

After opening on a weak note, the rupee recovered by 10 paise to trade at 68.40 against the US dollar as forex market weighed measures announced in the Union Budget to achieve the USD 5-trillion economy target.

At the interbank foreign exchange, the local unit opened at 68.55 a dollar but as Finance Minster Nirmala Sitharaman presented her maiden budget, the local unit gained strength and touched a high of 68.40 against the US dollar, up 10 paise over its previous close.

The rupee had settled at 68.50 against the US dollar on Thursday.

Presenting the first Budget of the Modi government in its second term, she said the Indian economy, which stood at USD 1.85 trillion five years back, has reached USD 2.7 trillion now, and is within capacity to reach USD 5 trillion in the next few years.

She said the interim budget focused on 10-point vision to boost economy. In the current year, India's economy will grow to become USD 3 trillion economy, sixth largest in world.

"We need to invest in infrastructure, digital economy and job creation in small and medium enterprises," Sitharaman said.

Meanwhile, easing crude oil prices also supported the local unit.

Brent crude futures, the global oil benchmark, fell 0.24 per cent to USD 63.15 per barrel.

Foreign institutional investors (FIIs) were net sellers in the capital markets, pulling out Rs 28.95 crore Thursday, as per provisional data.

Domestic bourses was trading in the negative territory Friday with benchmark indices Sensex trading 362.28 points higher at 39,545.78 and Nifty down 113.50 points at 11,833.25.