Rupee closes at fresh 2-month high of 71.93 a dollar despite oil rebound

The rupee on Friday strengthened further by 4 paise to close at a fresh two-month high of 71.93 against the US currency, continuing its gaining streak for the fourth day, despite a rebound in oil prices and a stronger dollar. 

Crude oil prices falling below the $70 per barrel mark and forex inflows have boosted the rupee sentiment as the domestic currency posted gains of 57 paise or 0.79 per cent this week to touch two-month high levels. 

Increased selling of the US currency by exporters and banks and gains in equity markets aided the rupee to post gains for the fourth day. 

The rupee opened higher at 71.94 per dollar against the last close of 71.97 per dollar and later touched a high of 71.71 per dollar on forex inflows and positive export data.
 

The rupee, however, lost most of the gains later in the day as oil prices rebounded more than 1.5 per cent, triggering concerns over inflation and current account deficit.

The rupee finally settled higher by 4 paise at 71.93 per dollar, a level not seen since September 14.

Foreign funds bought shares worth a net of Rs 8.44 billion on Friday, the provisional data showed.

Meanwhile, the BSE Sensex on Friday continued its rising streak for the second day to end at near a four-week high of 35,436.33.
 

The Brent crude gained 1.58 per cent to $67.67 per barrel after Saudi Arabia reiterated its call to reduce production from December.

Meanwhile, the British pound rebounded from lows Friday after Theresa May stuck to her Brexit deal despite strong opposition. The pound sterling rose nearly 0.5 per cent against the dollar.