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Rupee recovers 7paise along with stocks, ends at 70.44 vs USD

Press Trust of India  |  Mumbai 

The Tuesday recovered 7 paise to close at 70.44 to the US dollar on the back of gains in equity markets while US-trade-related concerns and rising continued to weigh on investor sentiment.

Stock markets cut short their nine-day losing streak with the benchmark BSE Sensex closing 0.61 per higher and NSE Nifty regaining nearly 74 points on value buying in pharma and counters.

At the interbank foreign exchange market, the opened strong at 70.43 against the US During the day, the local unit moved in a range of 70.51 to 70.30.

The domestic finally ended at 70.44, up 7 paise against its previous close. The had slid to a two-and-a-half-month-low of 70.51 Monday on heavy forex outflows.

"Strong recovery in the domestic equity markets and US Futures helped the rupee maintain strength throughout the session," said V K Sharma, Head PCG & Capital Markets Strategy,

Foreign fund outflows, rising crude prices and US-trade-related concerns continued to weigh on the domestic currency, dealers said.

"Rupee has nearly depreciated by 1.4 per in the last one week on account of the escalating trade dispute between US and and sustained outflow from the Indian capital market. There has been a net outflow of around USD 200 million dollars from the Indian capital market in the last one week," said Vaqarjaved Khan (Research Analyst, Angel Broking).

On the trade war front, US remained adamant on his policy to impose a hefty import duty on Chinese products, which has resulted in a quick retaliation from China and a massive fall in the American stock markets fearing a US-China trade war.

"There can be some retaliation, but it can't be very, very substantial, by comparison," Trump told reporters at the Oval Office of the

China announced a hike in retaliatory tariffs on the import of USD 60 billion of American products.

Meanwhile, the Dollar Index which gauges the greenback's strength against a basket of six currencies gained 0.06 per to 97.38.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 2,011.85 crore on a net basis Tuesday, provisional exchange data showed.

futures, the global oil benchmark, rose 1.28 per cent to trade at USD 71.13 per barrel amid simmering US-tensions and supply-side disruptions.

Meanwhile, (FBIL) set the reference rate for the rupee/dollar at 70.2576 and for rupee/euro at 78.9227. The reference rate for rupee/British pound was fixed at 91.4370 and for rupee/100 Japanese yen at 64.04.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 14 2019. 18:01 IST