Rupee opens 8 paise up at 68.05 against dollar ahead of Donald Trump’s swearing-in ceremony

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NEW DELHI: The rupee opened 8 paise higher at 68.05 against dollar on Friday on account of selling of American currency by banks and exporters. Overall market sentiments are looking cautious ahead of the US President-elect Donald Trump’s swearing-in ceremony later in the day.

Meanwhile domestic equity markets opened in the red following weak global cues. The 30-share Sensex opened 75.91 points down at 27,232.69, while the 50-share Nifty index opened 30.75 points, or 0.36 per cent, down at 8,404.35.

According to ICICIdirect.com, the rupee ended lower on Thursday as markets participants remain wary ahead of the new US President’s inauguration speech. “Although the US dollar ended slightly higher, it pared intra-day gains on US Federal Reserve’s chair comments that US Fed interest rate hike is not behind the curve.

Market participants gauged dovish comments and preferred profit booking ahead of Friday’s US presidential inauguration speech,” the brokerage house said.

The local currency closed nearly 5 paise down at 68.13 against dollar on Thursday.

Mustafa Nadeem, CEO, Epic Research said, “Rupee witnessed some selling pressure on Thursday by some banks and institutions as dollar rebounded against a basket of currency in international market. The range is still seems to be intact with stiff consolidation between 68.45 on higher side while 67.9 seems to be pivotal support. A break of this range will set some tone for the currency market.”

Foreign institutional investors stood net buyers in the domestic equity markets on Thursday as they bought shares worth a net Rs 335.93 crore, as per provisional data released by the stock exchanges. Their gross purchases and gross sales stood at Rs 4140.79 crore and Rs 3804.86 crore, respectively.

Government bonds ended lower on Thursday as rising yields weighed on demand ahead of the US presidential speech today. The benchmark 6.97% 2026 bond yield rose to 6.48 per cent from 6.45 per cent on Wednesday.