Rupee opens 26 paise higher against US dollar amid firm global cues

The rupee on Thursday opened 26 paise higher at 71.86 against the US dollar amid rise in Asian equities and over 4 per cent jump in the oil prices in the overnight trade. 

The domestic unit on Wednesday gained 27 paise to settle at 72.12 in line with a recovery in domestic equities. 

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 2,016.20 crore on Tuesday, provisional exchange data showed.

Rupee gained on Wednesday after dollar fell against its major crosses following weaker-than-expected manufacturing PMI from the US, said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL).

Data showed manufacturing index contracted in August compared to the previous month and that weighed on the overall market sentiment, 

"Today, USD/INR pair is expected to quote in the range of 71.90 and 72.50," Somaiya added. 

On the global front, Asian shares extended gains on Thursday and US stock futures jumped after China said it will hold trade talks with the United States in early October, raising hopes they can de-escalate their trade war before it inflicts further damage on the global economy, Reuters reported. 

In the currency market, sterling held onto gains against the dollar in Asia while the Chinese yuan jumped versus the dollar. In commodities, oil prices slipped in the morning trade after surging over 4 per cent in the previous trade after an industry report showed US crude stockpiles rose last week, against analyst expectations of a decline. 

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel