Mumbai, Jan 31 (PTI) The rupee appreciated by 26 paise to 70.86 against the US dollar in opening trade Thursday, driven by weakening of the greenback in overseas markets after the US Fed kept interest rate unchanged. Also Read - US Announces Reward of up to USD 5 Million For Information About 26/11 Mastermind
The US dollar weakened in overseas market after the Federal Reserve left the key US lending rate unchanged on Wednesday, and said it would be “patient” about making any further changes. Also Read - Trump Skips G20 Summit on Pandemic Preparedness, Later Spotted at His Golf Course: Report
Besides selling of the American currency by exporters, forex traders said fresh foreign fund inflows and positive opening in domestic equities also supported the rupee up move, while surging crude oil prices restricted the uptrend. Also Read - Won’t Let Rigged Election Steal Our Country: Trump Takes U-turn After Acknowledging Biden’s Victory
The rupee opened strong at 70.92 at the interbank forex market then gained further ground and touched 70.86 amid weakening of the American currency, displaying gains of 26 paise over its last close.
The rupee Wednesday had weakened by just 1 paise to close at 71.12 against the US dollar.
Foreign funds purchased shares worth Rs 130.25 crore from the capital markets on a net basis, and domestic institutional investors also bought shares worth Rs 502.26 crore Wednesday, provisional data showed.
Brent crude, the global benchmark, was trading higher at per 62.20 barrel up by 0.89 per cent.
Meanwhile, the benchmark BSE Sensex was trading higher by 246.08 points, or 0.65 per cent to quote at 35,822.38 while the NSE Nifty was trading at 10,705.60, higher by 53.80 points, or 0.51 per cent. PTI
This is published unedited from the PTI feed.