Rupee Firms Up By 19 Paise Against US Dollar. 5 Things To Know About Forex Market

The surge in Indian rupee came due to increased selling of the US currency by exporters and banks.

The Indian rupee gained by 19 paise to open at 67.79 against the US dollar in early trade on Friday. The surge in Indian rupee came due to increased selling of the US currency by exporters and banks. The US dollar slipping from an 11-month peak against other currencies overseas as investors took profits also helped the Indian rupee. On Thursday, the Indian rupee had appreciated by 10 paise to close at 67.98 against the greenback on sustained selling of the American currency by exporters and local banks.

Here are 5 things to know about forex market today:

1. Fresh foreign capital inflows took the local currency higher today. However, a lower opening of the domestic equity markets capped the rise, according to forex market dealers.
2. On Thursday, forex market sentiment swung back in favour of the domestic currency after the initial wave of volatility after the Reserve Bank of India’s June meeting minutes signalled that the central bank will rely on data for future rate hike decisions.
3. Meanwhile, the S&P BSE Sensex fell 60 points in the opening hours on Friday to trade at 35,371. NSE’s Nifty50 traded 23 points lower near 10,720 level.  The stocks that are eyed on Friday include JSPL, JSW Steel and ICICI Bank. Jindal Steel and Power (JSPL) is in the news because ratings agency ICRA upgraded the rating outlook of JSPL’s subsidiary Jindal Power from ‘Negative’ to ‘Stable’ on Thursday.
4. The European Union slapped revenge tariffs on iconic US products including bourbon, jeans and motorcycles in its opening salvo in a trade war with President Donald Trump. The tariffs, which took effect at midnight will further fuel jitters on world stock markets that are already alarmed by trade tensions between the United States and China. This may also impact the forex market today.
5. Oil prices also rose by more than 1 per cent in early Asian trading on Friday, pushing up by uncertainty over whether OPEC would manage to agree a production increase at a meeting in Vienna later in the day. (With PTI inputs)