Budget 2018: Rupee breaks 2-day FALL

Mumbai, Feb 1: The rupee finally broke out of its two-day consolidative trading range and managed to end higher by 2 paise at 63.58 against the US dollar ahead of the tomorrow's Union Budget. 

A broadly weaker greenback overseas along with sliding crude also provided a much needed support to the rupee. 

But, a caution ahead of release of macro-economic data -- core sector growth and revised GDP data -- kept the sentiment in check and saw the domestic currency falling to fresh one-week low of 63.75 in early trade before the recovery.

Dollar selling was also brisk as currency traders started repositioning ahead of the highly anticipated FOMC decision to be announced later during the NY trading session. 

Though, the overall forex sentiment remained little shaky ahead of the Union Budget 2018 which is expected to strike a fine balance between populism and credible fiscal prudence. 

The current BJP government will present its fifth and final full-year Budget post GST regime tomorrow and traders will keep an eye on fiscal deficit and borrowing targets for the next fiscal year. 

On the international commodity front, crude price fell for the third-straight day after data from an industry body showed global crude stocks rose more than expected last week amid higher US crude oil inventories. 

Brent crude futures were trading lower at USD 68.55 a barrel in early Asian trading. 

Meanwhile, domestic equities continued to witness profit-taking as market participants remained on the sidelines ahead of the Union budget tomorrow.

PTI