Indian rupee recovers 22 points to close at 72.67 against US dollar on easing crude prices, positive macroeconomic data

Indian rupee today recovered 22 paise to close at 72.67 against the US currency on easing crude oil prices and positive macroeconomic data released yeaterday, showing retail inflation dropping to a 13-month low in October.

On global front, crude oil prices fell below the USD 70 per barrel mark, easing concerns over expanding current account deficit and inflation which have a direct bearing on rupee.

Further, the fund inflows by foreign investors and the US dollar's weakness against some currencies overseas also supported the domestic unit, dealers reportedly said.

At the Interbank forex market, the domestic unit opened with strength at 72.81 and advanced to a high of 72.51 in day trade. Rupee finally settled at 72.67, showing a gain of 22 paise or 0.30 per cent over the last close.

Also, retail inflation fell to a one-year low of 3.31 per cent in October, raising hopes of a pause in RBI's interest rate hikes.

Meanwhile, oil prices today retreated after US President Donald Trump reportedly flayed Saudi Arabia's call for production cuts and pressed oil cartel OPEC for lower prices based on supply. 

Weak oil demand outlook by OPEC and worries about oversupply and US-China trade war have also weighed on oil prices.
Brent crude fell 70 cents to USD 69.42 per barrel, while West Texas Intermediate dropped 74 cents to USD 59.19 per barrel, said a PTI report.

Earlier on Onday, foreign institutional investors (FIis) bought shares worth Rs 832.15 crore, according to provisional data.

Meanwhile, equity benchmark Sensex today recovered nearly 332 points following robust buying in energy, infra and banking stocks amid easing crude oil prices and strong recovery in the rupee. The broader NSE Nifty also jumped over 100 points to cross the key 10,500 level.

Most of Asian markets, however, ended lower after a rout in tech stocks, tracking a hefty sell-off on Wall Street, while the dollar hit a 16-month peak on safe haven bets amid China-US trade war worries.