The rupee opened higher against the greenback on Tuesday, as investor sentiment improved amid hopes that the incumbent NDA government will win the second term.
At 09:10 AM, the rupee was trading at 69.70 a dollar, up 19 paise from its Monday’s close of 69.89. The home currency opened at 69.75 and touched a high and a low of 69.67 and 69.76 a dollar, respectively.
According to market experts, the rupee gained due to growing support for the Modi government in the upcoming general elections. Lok Sabha elections will begin on April 11 and will be held over seven phases followed by counting of votes on May 23, the Election Commission announced on Sunday.
Globally, the dollar dropped against rival currencies, amid growing speculation that British Prime Minister Theresa May might be closer to securing approval for her Brexit deal.
The dollar index, which measures the greenback against a basket of six rivals, fell almost 0.2 percent to 97.063 on a modest improvement in investors’ risk appetite.
In the commodities market, oil prices rose on Tuesday, boosted by healthy demand and production cuts led by producer group OPEC.
Brent crude futures were at $66.75 per barrel, up 17 cents, or 0.3 percent.
Meanwhile, foreign institutional investors (FIIs) bought equities worth a net Rs 3,810.60 crore on Monday, while domestic institutional investors sold shares to the tune of Rs 1,955.55 crore, provisional data showed.
In debt markets, the yields on the 10-year government bonds were up 0.15 percent to 7.36 percent from its previous close of 7.35 percent. Bond yields and prices move in opposite directions.
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