Rupee weakens to 69.40 against dollar

Indian rupee on Wednesday, opened lower at 69.40 against the dollar, driven by strengthening of US dollar and rising crude oil prices, in the overseas market.

Later, rupee depreciated 10 paise to 69.46 against the US dollar. On Tuesday, the rupee settled at 69.34/$.

Overseas, US dollar pulled back from three-month lows after Federal Reserve officials tempered expectations in the markets for aggressive monetary easing.

On Tuesday, Foreign institutional investors bought equity worth Rs 1,157.87crore, while domestic institutional investors bought shares to the tune of Rs 377.22 crore, provisional data available with stock exchanges showed.

Brent crude, the global oil benchmark, surged above $66 per barrel after data from industry report suggested a decline in US crude inventory stocks. This portrayed a decline in supply stock, that caused rise in oil prices.

Asian markets are trading down consecutively as cautious investors await the outcome of US-China talks in G20 summit, scheduled later this week. In Asian markets, Shanghai Composite Index, Hang Seng and Nikkei were trading negatively while Kospi and SGX Nifty on Singapore Exchange gained in the early sessions.

Wall Street stocks ended in the red on Tuesday, with US Dow slipping over half a percent and Nasdaq declining 1.5%.

In the meanwhile, key equity indices Sensex and Nifty are trading on a bullish note after paring early morning losses due to a marginally lower opening.

Currently, BSE 30 share Sensex is trading with a gain of 159 points at 39,594, while the NSE Nifty50 is trading flat in today's trade at 11,830 level, with an advance of 34 points.

As per market experts, there was a positive shift in domestic equity market as the much awaited monsoon rains that is behind schedule over weeks, finally arrived and swifted through western and few parts of central and northern India.

(Edited by Rupa Burman Roy)

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