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 advanced 20 paise to 65.30 against the dollar in early session today, broadly in line with domestic stocks taking on some muscle with a bright start.
The American currency found no favour with exporters and banks, who intensified their selling.
But the dollar’s increasing lure globally after US Fed Chair Janet Yellen’s speech alluding to rate hike and US President Donald Trump’s unveiling of tax overhaul plan had a sobering effect on the rupee, traders said.
Advertisement
A positive start for domestic stock markets lent support to the rupee, they added.
Yesterday, the rupee had recovered from over six-month lows to end 22 paise higher at 65.50 despite a buoyant dollar overseas.
The benchmark Sensex was trading higher by 170.29 points, or 0.54 per cent, at 31,452.77 in early session today.
Advertisement
