Rupee rises 123 paise in two days, IT stocks fall

The Indian currency has gained 123 paise in two sessions on report that PM Narendra Modi would hold a meeting to discuss economic scenario and the deteriorating rupee situation over this weekend.

By BusinessToday.In  
Friday, September 14, 2018

The rupee rose 50 paise in early trade to 71.68 against the dollar in the forex market on the government's assurance that all steps would be taken to ensure the domestic currency does not depreciate to unreasonable levels. The Indian currency has gained 123 paise in two sessions on report that PM Narendra Modi would hold a meeting to discuss economic scenario and the deteriorating rupee situation over this weekend.

On Wednesday, the rupee recovered from its all time low of 72.91 level to the dollar to close at 72.18, revealing a smart rise of 51 paise or 0.70 per cent-the biggest one-day gain for the domestic unit since May 25. The recovery came amid a report that PM Narendra Modi would hold a meeting to discuss economic scenario and the deteriorating rupee situation over this weekend.

The rupee strengthened by another 65 paise to 71.53 (intra-day) against the dollar, also supported by a fall in crude oil prices.

The rupee rise came as a negative for IT stocks  with the BSE IT index falling 0.24%-the most among 19 sectoral indexes in an otherwise rising market. The Infosys stock was the top loser falling 0.69% in trade today. Wipro and TCS too fell over 0.20% respectively.

Besides, dollar selling by exporters and banks, the greenback's weakness against other currencies overseas, helped the domestic currency recover, forex dealers said.

They said a higher opening in the equity market and positive macro data released on Wednesday also supported the rupee's recovery, they added.

Industrial production grew at 6.6 per cent in July and retail inflation cooled to a 10-month low of 3.69 per cent in August, according to the data released by Central Statistics Office.

The forex market was closed on Thursday on account of Ganesh Chaturthi.

Meanwhile, the BSE benchmark Sensex reclaimed the 38,000-mark to 38,036.81 by climbing 318.85 points, or 0.85 per cent, in opening trade.

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