Rupee Stronger By 23 Paise Against US Dollar
New Delhi: After touching a historic low of 74.39, the rapidly depreciating Indian rupee rose 23 paise to 74.16 against the U.S. dollar on Wednesday after the American currency weakened overseas amid increased selling by banks and exporters. At the forex market, the rupee surged by 23 paise at 74.16 against the U.S. dollar in early trade.
Dealers also said that RBI’s decision to introduce Rs. 12,000 crore into the system through government bonds on October 11 to meet the festival season demand for funds also strengthened the domestic currency. Besides, a higher opening of domestic equity markets and Sensex helped the Rupee to recover.
Notably, the rupee on Tuesday had dwindled by 33 paise to stand at a fresh lifetime low of 74.39 against the U.S. dollar. High crude oil prices, strengthening of the greenback and unabated foreign fund outflows were said to be the causes behind the downfall of the domestic currency.
Moreover, the benchmark BSE Sensex rose over 200 points in early trade on Wednesday due to gains in auto, metal and banking stocks in view of unabated buying by domestic investors.