The rupee opened slightly higher against the dollar on Wednesday, as participants preferred to sit on the fence ahead of the results of general elections on May 23.
The News18-Ipsos exit poll showed NDA securing 336 seats beating the 82 seats by the Congress-led United Progressive Alliance, a coalition of opposition parties. The tally of the Congress, which won 44 seats in 2014 — its worst-ever electoral performance — is projected to reach 46 seats. The BJP, on the other hand, will score 276.
At 09:10 AM, the rupee was trading at 69.67 a dollar, up 5 paise from its Tuesday’s close of 69.72. The home currency opened at 69.68 and touched a high and a low of 69.66 and 69.71 a dollar, respectively.
The rupee, Asia’s top performer in March, has slid 1.6 percent this quarter as escalating trade tensions roiled global markets. Sentiment has been fragile as overseas investors have pulled more than $650 million combined from local shares and bonds this month.
In the currency market, the dollar hovered near a four-week high after the United States eased trade restrictions on China's Huawei.
Against the yen, the dollar was largely steady at 110.49 yen, having hit a two-week high of 110.675 during the previous session.
In commodity markets, oil prices dropped after industry data showed an increase in US crude inventories.
International Brent crude futures were down 38 cents, or 0.5 percent, at $71.80 at barrel by 0219 GMT, having risen 21 cents on Tuesday.
Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,185.44 crore on Tuesday, provisional exchange data showed.
In debt markets, the yields on the 10-year government bonds were up 0.04 percent to 7.31 percent from its previous close of 7.30 percent. Bond yields and prices move in opposite directions.
First Published: May 22, 2019 9:20 AM IST
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