Rupee jumps 36 paise against US dollar on crude cool-off

Mumbai: The rupee gained 36 paise to end at 72.31 against the US dollar Wednesday as global crude oil prices hovered near one-year lows, easing concerns over expanding current account deficit and inflation.
The recovery was also supported by dollar-selling by exporters and banks, foreign fund inflows and the greenback’s weakness against some currencies overseas, traders said.
Brent crude, the international benchmark, dropped almost 7 per cent to a one-year low of USD 65 a barrel, before staging a modest recovery. US President Donald Trump urged the Organization of the Petroleum Exporting Countries (OPEC) to maintain their current policy of gradually increasing output, which helps to cap oil prices.
At the interbank forex market, the rupee commenced with strength at 72.18 and appreciated further to 71.99 against the US dollar. However, it lost some momentum and finally finished at 72.31, showing a gain of 36 paise.
The rupee had climbed 22 paise to close at 72.67 against the US dollar Tuesday. “Rupee hit the 72-mark against US dollar for the first time since September in the morning session after sharp fall in oil and gains in stocks stepped up demand expectations for the currency.
Foreign institutional investors (FIIs) net bought shares worth Rs 277.38 crore Wednesday, as per provisional data. (PTI)