Rupee Recovers To End Flat At 71.78/$
Rupee closed at 71.78/$ even as uncertainty over the U.S.-China trade talks, recession fears kept investors on edge.
The rupee gave up most of its losses to close flat at 71.78 against the U.S. currency on Thursday even as uncertainty over the U.S.-China trade talks and recession fears kept investors on edge.
Losses in domestic equity markets and unabated foreign fund outflows hit the rupee sentiment, forex dealers said. At the interbank foreign exchange, the rupee opened lower at 71.92 and fell further to the day's low of 72.089 against the dollar after inverted U.S. yields fueled fears of a possible recession.
Positivity surrounding the U.S.-China trade talks after China indicated that it may not immediately respond to recent U.S. tariff hikes helped revive the sentiment. Chinese currency yuan gained 0.20 percent, cutting short its 10-day losing streak against the dollar.
The domestic currency touched a high of 71.70 during the session before settling at 71.78. The BSE Sensex ended 382.91 points, or 1.02 percent, lower at 37,068.93, while the broader NSE Nifty shed 97.80 points, or 0.89 percent, to finish at 10,948.30.
Foreign investors pulled out Rs 986 crore on a net basis from equities on Thursday, provisional exchange data showed. "Rupee continues to take resistance around 72.20 zone, until it is trading below this the view will be bearish for dollar. However, further developments regarding the U.S.-China trade war will keep Chinese yuan, Indian rupee and other emerging market currencies on edge," Rahul Gupta, Currency Research Head, Emkay Global Financial Services Limited, said.
Brent crude futures, the global oil benchmark, declined 0.08 percent to $60.44 per barrel as recession fears gripped markets. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.08 percent to 98.29. The 10-year government bond yield was up at 6.58 percent.