Rupee opens at 1-month high ahead of Union Budget 2017

NEW DELHI: Extending its winning run for the sixth straight session, the rupee opened at 1-month high of 67.63 against dollar on Wednesday ahead of the Union Budget 2017. The currency opened 24 paise higher against the previous close of 67.87.

Selling of American currency by banks and exporters and inflows by foreign institutional investors ( FIIs) in Tuesday’s session further supported the local unit in opening trade on Wednesday.

Meanwhile, the domestic equity market opened marginally in the green following mixed global cues. The 30-share Sensex was trading higher by 30.64 points, or 0.11 per cent, at 27686.60 around 9.25 am (IST), while the 50-share NSE Nifty index was up 15.30 points, or 0.18 per cent at 8576.60 around the same time.

FIIs bought shares worth Rs 735.32 crore on Tuesday with gross purchases and gross sales of Rs 3,336.30 and Rs 2,600.98, respectively.

Extreme dollar volatility in the midst of new US President Donald Trump's protectionist policies also supported the trading sentiment on Tuesday.

Though, the Economic Survey projected a lower economic growth of 6.5 per cent for this fiscal, impacted by demonetisation shock, but said it will rebound to 6.75-7.5 per cent in the next financial year.