Rupee rises 7 paise to 70.75 against US dollar in early trade

The rupee appreciated by 7 paise to 70.75 against the US dollar in early trade on Thursday as a sign of easing tensions between the US and China.

The United States on Wednesday signed the first phase of a trade deal with China, which President Donald Trump described as historic, concluding more than a year of tough negotiations between the two largest economies of the world.

The first phase of the trade deal includes Intellection Property (IP) Protection and Enforcement, ending forced technology transfer, a dramatic expansion of American agriculture, removing barriers to American financial services, ending currency manipulation, rebalancing the US-China trade relationship and effective dispute resolution.

The agreement was signed by President Trump and Chinese Vice Premier Liu He, Politburo Member and Vice Premier of the People's Republic of China.

At the interbank foreign exchange, the rupee opened at 70.80 against the US dollar, then gained further ground and touched a high of 70.75 against the American currency, registering a rise of 7 paise over its previous close.

On Wednesday, the rupee had settled for the day at 70.82 against the US dollar.

Traders said the appreciation in the rupee was largely on the back of positive global cues.

Meanwhile, domestic bourses opened on a strong note on Thursday with benchmark indices Sensex trading 155.38 points higher at 42,028.11 and Nifty 35.25 points at 12,378.55.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.02 per cent to 97.20.

Foreign institutional investors (FIIs) remained net buyers in the capital market, as they purchased shares worth Rs 279.53 crore on Wednesday, according to provisional exchange data.

Brent crude futures, the global oil benchmark, rose 0.64 per cent to trade at USD 64.41 per barrel.

The 10-year government bond yield was at 6.64 per cent in the morning trade.