Rupee strengthens on dollar selling

On Friday, the Indian rupee strengthened against the US dollar on account of some selling in American currency by banks and exporters. Sentiments improved as investors followed positive global cues. The global markets were trading positive on optimism about the outcome of trade talks between the United States and China.

Moreover, weakening of the American currency against other currencies overseas also supported the domestic unit. However, sustained foreign fund outflows and rising crude prices weighed on the domestic currency and restricted its rise. Foreign Institutional Investors (FIIs) remained net sellers in the capital market, pulling out Rs. 263.11 crore on Thursday, as shown by the exchange data.

Meanwhile, the domestic equity market started the session stronger, following positive cues from the global markets. However, the trade started turning lackluster amid anxiety over the earnings season.

The partially convertible currency is currently trading at 70.93, stronger by 14 paise from its previous close of 71.07 on Thursday. Rupee had opened at 70.84 against the greenback. The currency touched a high and low of 70.80 and 70.94 respectively.

The reference rate for the dollar stood at 71.11 and for euro stood at 77.92 on October 9, 2019. While the reference rate for the yen stood at 66.35 and the reference rate for the Great Britain Pound (GBP) stood at 86.79.