Rupee recovers 34 paise to 69.86 against US dollar in morning trade

Rupee recovers 34 paise to 69.86 against US dollar in morning trade
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Mumbai: The rupee appreciated 34 paise to 69.86 against the US dollar in opening trade Friday amid weakening American currency and positive opening of the domestic equity market.

Forex traders said, the American currency lost some ground against major currencies overseas, while on the domestic front, the equity market staged a recovery and propped up the rupee.

At the Interbank Foreign Exchange (forex) market, the rupee opened higher at 69.95 and rose further to touch a high of 69.86 a dollar, showing a rise of 34 paise over it’s previous close.

On Thursday, the rupee weakened for the second straight session and fell 2 paise to 70.20 against the dollar.

Traders however said that significant foreign fund outflows and rising crude oil prices weighed on the domestic currency and capped the upmove.

Foreign funds pulled out Rs 972.81 crore from the capital markets on a net basis, while domestic institutional investors purchased shares worth Rs 34.52 crore Thursday, provisional data showed.

The global benchmark Brent crude was trading higher by 0.13 per cent at 56.02 per barrel.

Meanwhile, the BSE benchmark Sensex Friday rebounded nearly 200 points and the NSE Nifty reclaimed the 10,700 mark, driven by recovery in auto, metal and banking stocks amid buying by domestic institutional investors.