Rupees strengthens to 71 with softer oil,fund flows

Rupees strengthens to 71 with softer oil,fund flows


Why in News?

Softer crude oil prices, along with foreign fund inflows, helped the rupee post over 1% gain against the dollar.

Highlights:

  • Current account deficit to remain within the tolerance limit and for a further reduction in petrol and diesel prices.
  • The current account deficit could be at 2.6% of the GDP against 2.8% of the GDP previously estimated.
  • The rupee gained for the seventh straight session and appreciated by 1.07%, or 77 paise, against the dollar to close the day at 70.70 — its highest level in 12 weeks. 
  •  The Indian currency has gained around 3% in the last three trading sessions and has appreciated over 5% now from its record low.
  • Brent crude, the international oil benchmark, was trading 0.39% lower at $62.85 per barrel on Thursday, while foreign funds poured ₹446.24 crore into the stock markets on a net basis and domestic institutional investors net bought shares worth ₹49.68 crore.
  • The recent decline in oil prices was likely to compress the current account deficit by $5 billion-$6 billion from the estimates of $78 billion this fiscal.
  • The total foreign exchange reserves for the week ended November 9 were $393 billion, down by $33 billion since its peak in April this year.
Rupees strengthens to 71 with softer oil,fund flows Rupees strengthens to 71 with softer oil,fund flows Reviewed by The Hindu Current Affairs on November 23, 2018 Rating: 5

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