Registering a rise of 17 paise over its previous close, the rupee opened at 71.87, and then gained further ground to touch a high of 71.67, at the interbank foreign exchange
Gains in the domestic equity market and resumption of US-China trade talks in October strengthening investor sentiments, caused the Indian rupee to appreciate by 17 paise to 71.67 against the US dollar in early trade on Friday (September 6).
Registering a rise of 17 paise over its previous close, the rupee opened at 71.87, and then gained further ground to touch a high of 71.67, at the interbank foreign exchange.
At the close of day on Thursday, the rupee had gained 28 paise at 71.84 against the US dollar.
The domestic unit, however, was trading at 71.73 against the dollar at 09:49 am.
There was optimism among investors on the US-China trade talks in October, according to forex traders.
The two countries will hold another round of trade negotiation in Washington in early October in an attempt to put the trade war behind.
Higher opening in domestic equities also lent support to the local unit.
Benchmark indices Sensex traded 153.43 points higher at 36,797.85 and NIFTY was up 44.20 points at 10,892.10 as domestic bourses opened on a positive note on Friday.
A weak American currency among other currencies overseas also dragged the rupee down. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell marginally by 0.01% to 98.40.
Market participants, however, said sustained foreign fund outflows and rising crude prices weighed on local currency.
According to provisional exchange data, foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 561.17 crore on Thursday.
Brent crude futures, the global oil benchmark, rose 0.25% to trade at $61.10 per barrel.
The 10-year government bond yield was at 6.59% in morning trade.
With PTI inputs
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Last Updated 6, Sep 2019, 11:51 AM