Rupee extends rally, opens 32 paise higher against dollar

Rupee extends rally, opens 32 paise higher against dollar

The rupee scaled its fresh 11-week high on Thursday following selling in greenback by exporters and softening crude oil prices.

The local currency opened 32 paise up at 71.14 against the US dollar against the closing level of 71.46 hit on Tuesday. Currency markets were closed on Wednesday on account of Id-E-Milad.

This is the seventh straight session of gains for the rupee against the dollar. The currency strengthened 2.50 per cent during the same period.

The benchmark 10-year bond yields were hovering at one-week low of 7.75 per cent in the early trade.

On Wednesday, oil remained under pressure during the first half of the session but recovered in the latter half despite a build of 4.9 million barrels. Gasoline inventories brought some joy for oil bulls. They fell by 1.3 million barrels last week but are still above the average.

“On the domestic front, no major economic data is expected to be released and following Thanksgiving holiday in the US, volatility could drop in the latter half of the session. Today, USDINR pair is expected to quote in the range of 70.80 and 71.40,” said Motilal Oswal Financial Services in a report.

Meanwhile, domestic equity markets opened in the green following firm global cues. The BSE Sensex was up nearly 50 points at 35,248 at around 9.20 am (IST), while the NSE Nifty index was up nearly 10 points at 10,608.