Buoyed by a sharp decline in crude oil prices, the rupee on Wednesday extended its gains to open 34 paise higher at 70.10 against the US dollar. Minutes later, the currency breached 70-mark to trade at 69.86. This was the first time rupee breached the 70 level since December 3.
The domestic unit on Tuesday rallied by a whopping 112 paise, its best single-day gain in over five years, to settle at 70.44 against the US dollar as softening crude oil prices eased concerns over India’s current account deficit expansion.
Besides, sustained selling of the American currency by exporters and banks as well as the greenback's weakness against its key rivals globally ahead of the US Fed policy decision Wednesday also helped the domestic unit scale further heights.
On the global front, US oil prices rose on Wednesday to claw back part of their more than 5 percent losses from the previous session, with worries about oversupply and a slowing global economy keeping markets under pressure. US crude oil had climbed 37 cents, or 0.8 per cent, to $46.24 per barrel by 6:52 am, after plunging 7.3 per cent the day before in a session when it touched its lowest since August last year at $45.79.
In the equity market, Asian shares traded mixed as a spectacular fall in the price of oil spurred speculation the US Federal Reserve might be done with tightening after its policy meeting later in the session.