Rupee gains 26 paise against US dollar in opening trade

The rupee appreciated by another 26 paise to 70.44 against the U.S. dollar in opening trade on Wednesday after retail inflation fell to a 19-month low of 2.05 per cent in January.

The weakness in the dollar against some currencies overseas as investors shifted their focus to riskier asset amid the US-China trade truce hopes, also supported the rupee’s upmove. Besides, retail inflation falling to a 19-month low of 2.05 per cent in January over the previous month, and selling of the American currency by exporters supported the rupee, forex dealers said.

Industrial output growth remained subdued at 2.4 per cent in December 2018 on account of contraction in the mining segment and poor show by the manufacturing sector.

The rupee had gained 48 paise to end at a one-month high of 70.70 against the US dollar on Tuesday, registering its sixth straight session of gain. In the last six trading sessions, the rupee has gained 110 paise.