Rupee opens nearly 5 paise higher at 68.28 against dollar

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NEW DELHI: The rupee opened nearly 5 paise higher at 68.28 against the US dollar on Wednesday on account of selling of American currency by banks and exporters.

Meanwhile, the domestic equity market opened on a flat note tracking mixed global cues. The BSE Sensex was trading nearly 43 points, or 0.16 per cent, up at 26,686.70, while NSE Nifty was up 17.30 points or 0.21 per cent, at 8,209.55 in early trade. The local currency was trading 8 paise higher at 68.25 against dollar around 9.15 am.

According to Angel Broking, rupee may trade sideways in Wednesday’s trade with major support levels of 68.35 and 68.20 against dollar and resistance levels are seen at 68.60 and 68.75.

The domestic currency on Tuesday depreciated by 11 paise to end at a fresh one-month low of 68.33 against the American currency as upbeat economic manufacturing data release from the US pushed the Dollar index higher, creating pressure on the domestic currency.

ICICIdirect.com in a research note said, “The Dollar index extended gains against major currencies due to the expectation of divergent monetary policies. A recovery in US 10-year yield along with positive moves in equities supported gains in the first trading day of CY17.”

The Reserve Bank of India (RBI) on Tuesday fixed the reference rate for the dollar at 68.0864 and euro at 71.3818. In cross-currency trade, the rupee was flat against the pound sterling at 83.89 and against the euro at 71.466.

Government bonds eroded early gains to end lower for the first time in five sessions on Tuesday, after investors shrugged off the government’s move to trim market borrowing for the remainder of this fiscal year. The benchmark 6.97% 2026 bond yield rose to 6.45 per cent from 6.41 per cent in previous day.