India pushing Rupee as next global trade instrument
It is not just Western sanctions on Russia that accelerated the trend to circumvent the dollar, but the strength of the currency in the past year has also posed a challenge.
The rupee pared its initial gains, while trading 15 paise higher at 68.42 against the American currency in late morning deals on continued bouts of dollar selling from banks and exporters.
The rupee resumed sharply higher at 68.32 from yesterday’s closing level of 68.57 at the inter-bank foreign exchange here.
The Indian unit traded between 68.31 and 68.43 on sustained selling of the US dollar by banks during morning deals, it was quoting at 68.42 at 1030 hrs. “Macro concerns and dollar’s strength pressured the rupee sentiment,” a dealer said.
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Meanwhile, the domestic industrial production slipped to a seven-month low of 3.2 per cent in May due to sluggish performance of manufacturing and power sectors, while retail inflation continued to remain firm in June on costlier fuel.
Overseas, the US dollar was buoyant near a 10-day peak against its major peers in early Asian trade, supported by US Treasury yields that edged higher on expectations the American inflation rate will rise.
The 30-share BSE Sensex is trading flat by 0.19 points or 0.00 per cent at 36,548.60 at 1050 hrs.
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