On Tuesday, the domestic currency appreciated 112 paise to settle at 70.44/$, recording its best single-day gain in over five years.
The Indian rupee appreciated 58 paise to trade at 69.86/$ in the early morning session on Wednesday. The currency opened 39 paise higher at 70.05/$ compared to its previous close of 70.44/$.
At 10:13 AM, the Indian rupee was trading at 70.09/$. On Tuesday, the domestic currency appreciated 112 paise to settle at 70.44/$, recording its biggest single-day gain in over five years.
The gain is mainly due to a sharp fall in global crude oil prices. Further, weakness in the American currency ahead of the outcome of the Federal Reserve’s policy meeting also attributed to the rally in the Indian rupee.
On Tuesday, West Texas Intermediate (WTI) oil futures plunged 7%, while Brent oil plummeted 5%. The fall can be attributed to unexpected growth in Russia's oil output during November, the US government’s recent forecast of increasing shale oil output, and the fear of an economic slowdown in global markets. However, oil prices rebounded marginally on Wednesday.
Notably, the appreciation in the domestic currency caused heavy buying in oil marketing and aviation shares, while a selloff in IT shares. Accordingly, SpiceJet, IndiGo, Jet Airways, IOC, BPCL, and HPCL gained in the range of 4-2%, respectively. Conversely, the Nifty IT index slipped ~1% in Wednesday’s morning session.
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| capitalstars |
At 10:13 AM, the Indian rupee was trading at 70.09/$. On Tuesday, the domestic currency appreciated 112 paise to settle at 70.44/$, recording its biggest single-day gain in over five years.
The gain is mainly due to a sharp fall in global crude oil prices. Further, weakness in the American currency ahead of the outcome of the Federal Reserve’s policy meeting also attributed to the rally in the Indian rupee.
On Tuesday, West Texas Intermediate (WTI) oil futures plunged 7%, while Brent oil plummeted 5%. The fall can be attributed to unexpected growth in Russia's oil output during November, the US government’s recent forecast of increasing shale oil output, and the fear of an economic slowdown in global markets. However, oil prices rebounded marginally on Wednesday.
Notably, the appreciation in the domestic currency caused heavy buying in oil marketing and aviation shares, while a selloff in IT shares. Accordingly, SpiceJet, IndiGo, Jet Airways, IOC, BPCL, and HPCL gained in the range of 4-2%, respectively. Conversely, the Nifty IT index slipped ~1% in Wednesday’s morning session.
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