Rupee gains 6 paise in early trade

The rupee gained nearly 6 paise to 72.63 against dollar in early trade on Wednesday on account of some selling in American currency by banks and exporters. However, the local currency opened almost flat at 72.71 against the dollar.

The currency on Tuesday weakened by 6 paise to close at 72.69 against the dollar.

The US dollar continued to consolidate against major currencies as investors remain cautious ahead of the Fed’s September monetary policy meeting. The Fed is expected to raise interest rates by 25 basis points in this meeting. Gains over JPY were countered by losses against the GBP and Euro.


“We expect the Euro to continue to remain strong against the dollar while any dovish hint from FOMC could see further sharp gains in common currency,” ICICIdirect.com said.

India’s economy continues on a robust growth path, the Asian Development Bank (ADB) said on Wednesday while maintaining the growth forecast for the current fiscal at 7.3 per cent.

However, depreciation of the rupee and volatile external financial markets pose challenges, the multilateral lending agency added, in an update of its flagship annual economic publication, the Asian Development Outlook (ADO) 2018.

Meanwhile, domestic equity markets opened in green following global cues. The BSE Sensex opened 236 points, or 0.64 per cent, up at 36888, while NSE Nifty index was up 67 points, or 0.61 per cent, at 11,134.