Rupee opens 14 paise higher at 70.42 against US dollar

The rupee climbed 14 paise to 70.42 against the US dollar in the opening deals on Monday. The domestic unit on Friday spurted by 32 paise to close at a nearly two-month high of 70.56 as crude oil prices receded following reports that Saudi Arabia had agreed on a temporary ceasefire in Yemen.

The local unit notched up gains of 38 paise on a weekly basis.

In the capital markets, after remaining net sellers for the past two months, foreign investors infused a net Rs 7,714 crore into the domestic capital markets in September following a slew of economic reforms by the government. However, FPI inflows into India will also be influenced by how the economy performs and how soon corporate earnings recover, VK Vijayakumar, chief investment strategist at Geojit Financial Services said. The US Fed's monetary stance and global liquidity are also crucial in determining FPI flows, he said.

On the global front, Asian stock markets, including China’s, were little changed on Monday, shrugging off news that the US administration is considering delisting Chinese companies from US stock exchanges. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.05 per cent while China's Shanghai stock index slipped 0.2 per cent, Reuters reported.

In commodities, oil prices edged higher, rebounding from a two-week low in the previous session, although gains were checked by concerns about the outlook for the global economy. Brent crude futures rose 21 cents, or 0.3 per cent, to $62.12 a barrel while US West Texas Intermediate (WTI) crude futures rose 14 cents, or 0.3 per cent to $56.05 a barrel.

Rupee opens flat against US dollar amid positive global cues

The rupee on Friday opened one paise lower at 71.85 against the US dollar amid US-China trade truce optimism.

The domestic unit on Thursday gained 28 paise to settle at 71.84 as investor sentiment revived after China and the United States said they will resume trade talks. The rupee has appreciated by 55 paise in the past two sessions.

Market participants, however, said weak domestic equity market, sustained foreign fund outflows and rising crude prices weighed on local currency.

Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 561.17 crore on Thursday, according to provisional exchange data.

The Indian rupee will not regain ground lost against the dollar in the coming year, according to strategists polled by Reuters, who believe a recent rollback of a surcharge on foreign investments will have no impact on the currency.

After gaining about 2 per cent following a sweeping victory in the general election by the incumbent government late in May, the rupee has lost nearly 6% since a July 5 budget when a surcharge on foreign investments was introduced, the Reuters report added.

"Today, USD/INR pair is quote in the range of 71.70 and 72.30," said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL).

On the global front, Asian stocks joined global peers and rose on Friday while safe havens such as government bonds and the yen were on the defensive. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4 per cent while the Shanghai Composite Index was up 0.2 per cent and Hong Kong’s Hang Seng rose 0.6 per cent.

In currency market, the dollar stood at 107.070 yen after climbing to a one-month high of 107.235 overnight while he dollar index against a basket of six major currencies was little changed at 98.420. In commodities, oil prices edged higher, said a Reuters report.

Rupee opens 10 paise lower at 69.33 against US dollar

The rupee slipped by 10 paise to 69.33 against the US dollar in the opening deals on Monday. The domestic unit had closed at 69.23, down 6 paise on Friday, owing to increasing demand for the greenback from importers.

During the week, the rupee lost 9 paise. It was the second consecutive week of loss for the local currency.

This week, on the domestic front, inflation and industrial production number will be released and that could trigger a move for the currency, says Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services. "Today, USD/INR pair is expected to open at 69.60 (Apr) and quote in the range of 69.20 and 69.80," Somaiya added.

In the equity market, overseas investors have pumped in a net sum of Rs 8,634 crore into the Indian capital markets in the first five trading sessions of April, mainly due to positive market sentiment. However, for the 2018-19 fiscal, they were net sellers to the tune of Rs 44,500 crore.

On the global front, Asian shares inched up to seven-month highs on Monday as investors cheered a rebound in US payrolls and hints of more stimulus in China. Chinese blue chips climbed 1.4 per cent while MSCI’s broadest index of Asia-Pacific shares outside Japan followed by gaining 0.4 per cent to its highest since August, Reuters reported.