Indian rupee opened firm against the US dollar on Wednesday as risk-averse investors trimmed their exposure to the greenback.
At 09:15 AM, the rupee was trading at 73.17 a dollar, up 40 paise from its Tuesday’s close of 73.57. The home currency opened at 73.16 and touched a high and a low of 73.15 and 73.19 a dollar, respectively.
The rupee bounced back from the day’s low level to settle almost flat at 73.57 against the US currency on Tuesday helped by easing crude oil prices and increased dollar selling by banks and exporters.
Weaker US dollar helped the local unit to recover some lost ground. The US dollar index, a gauge of its value against six major peers, was wobbly in early Asia trade. It was last slightly lower at 95.94.
But unabated capital outflows by foreign funds continued to dampen the sentiment, according to market experts.
Foreign investors took out more than Rs 850 crore from capital markets since Friday amid growing geopolitical tensions.
The rupee is the worst performing emerging market currency having lost almost 15 percent since January this year. Between April and September the rupee has plummeted more than 7 to the dollar.
In debt markets, the yields on the 10-year government bonds fell 0.5 percent to 7.85 percent after closing at 7.89 percent on Tuesday. Bond yields and prices move in opposite directions.
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