Rupee appreciates 17 paise to 68.93 against U.S. dollar

The rupee appreciated 17 paise to 68.93 against the U.S. dollar in opening trade on March 18 driven by weakening greenback in overseas markets and sustained foreign inflows.

Besides, narrowing country’s trade deficit and selling of the American currency by exporters supported the domestic currency, dealers said.

The marginal 2.44% increase in exports as well as lower imports of gold and petroleum products in February significantly narrowed the country’s trade deficit to $9.6 billion, according to data released by the commerce ministry on March 15.

Extending its gains for the sixth session, the rupee opened higher at 68.92 at the interbank forex market and gained further ground to touch 68.87. However, it pared some gains and was quoting 17 paise higher at 68.93 at 0920 hours.

The rupee on March 15 had jumped 24 paise to close at 69.10 against the U.S. dollar on sustained foreign fund inflows and heavy buying in domestic equities.

Meanwhile, foreign institutional investors (FIIs) remained net buyers in the capital market, putting in ₹4,323.49 crore on a net basis on March 15, as per provisional data.

Meanwhile, the benchmark BSE Sensex was trading higher by 232.31 points, or 0.61%, at 38,256.63.