The Indian rupee on Friday hit a one-month high to cross the 71-mark against the US dollar tracking gains in Asian currencies as the European Central Bank delivered a bigger-than-expected stimulus and the US administration considered an interim trade deal with China.
Having opened at 71.01 to a dollar, the Indian currency touched a high of 70.92 — a level last seen on 14 August. At 9.10 am, the local currency traded at 70.95, up 0.27% from its Thursday’s close of 71.67. The currency was higher for the seventh consecutive sessions.
According to CR Forex Advisers, the rupee is majorly driven by developments in the US-China trade talks, and hence the ongoing positive talks between the two seem to have set the wheels in motion for the currency. Nonetheless, one negative tweet is mightier than a tariff to get the rupee back to its recently formed zone. Thereby, 70.80 will be the next crucial level to be watched where the pair may rest for a while before resuming its drive or taking a reverse gear.
Read EquityPandit’s Nifty Outlook for the Week