Rupee opens 16 paise higher against US dollar at 65.34

NEW DELHI: The rupee on Wednesday opened 16 paise up at 65.34 against dollar ahead of the RBI's fourth bi-monthly policy review for 2017-18 due later in the day.

The local currency on Tuesday dropped by 22 paise to close at 65.50 against the dollar.

Angel Broking said, “USDINR spot is expected to strengthen on Wednesday as investors expect no change in RBI Monetary Policy Statement given the gradual rise in retail inflation. Also, investors await a crucial announcement on who will lead Federal Reserve in 2018 and beyond in the coming days. Also, strength in domestic markets will provide further support to the domestic currency.”

Meanwhile, domestic equity markets opened in green on Wednesday following mixed global cues. The BSE Sensex was up 26.58 points, or 0.08 per cent, at 31,523.96, while NSE Nifty index was up 12.85 points, or 0.13 per cent, at 9872.35 in the early trade.

Foreign portfolio investors sold shares worth Rs 1473.09 crore in the previous trading session with gross purchases and gross sales stood at Rs 4944.77 crore and Rs 6417.86 crore, respectively.

Government bonds rose on Tuesday, on expectations that the Monetary Policy Committee may soften its stance at the end of its two-day review meeting and factor in the recent growth slowdown while reviewing rates.

The GoI benchmark 6.79% 2027 bond yield declined to 6.65 per cent from 6.66 per cent in the previous session.