The rupee recovered from early lows to trade higher against the US currency in afternoon session following more than 1 per cent drop in crude oil prices in global markets. The domestic currency was trading up by 10 paise at 70.78 at 1325 hrs against the dollar which otherwise was ruling high in overseas markets.
The rupee opened lower and fell further to 70.93 as the US currency rose to multi-weeks high against the major currencies like euro. The rupee moved in a range of 70.76 to 70.93 in day trade. It had closed at 70.88 to the US dollar on Thursday.
Weakening crude oil prices following a quick recovery in Saudi Arabia’s production, which was hit by attacks at its refineries two weeks ago, helped the rupee stem losses. International Brent crude declined by 1.88 per cent or USD 1.18 to USD 61.42 per barrel.
India’s oil import dependence is more than 80 per cent and any spike in crude oil prices weighs on the rupee due to forex outflows. Foreign fund inflows also helped the rupee post gains over the US dollar. FIIs, who were net sellers for the last few sessions, bought equities worth a net Rs 737.17 crore on Thursday, according to provisional exchange data.
Indian stocks were trading lower, tracking weak cues from global markets which fell after the impeachment probe into US President Donald Trump hit investor sentiment.
Market benchmark BSE Sensex was down by 56.37 points or 0.14 per cent at 38,933.37 while the broader NSE Nifty slipped by 25.30 points or 0.22 per cent to 11,545.90.