The Indian Rupee opened higher on the second consecutive day after reports of US deciding to extend the imposition of tariffs on auto imports by six months amid US-China trade tensions. Today, it opened in green at 70.24 against the US dollar. It settled down by 0.14 percent at 70.33 as against the previous close of 70.47 on Wednesday. It was under pressure for few days due to escalating tensions between US and China due to trade deal.
“Spot INR is likely to trade in a range between resistance at 70.45 & support at 70.05 with a lower bias as trade war fears eased a bit after the US President extended the imposition of tariffs on auto imports by 6 months. Crude oil price is also likely to benefit from it,” Amit Sajeja, Associate Vice President, Motilal Oswal, told Financial Express Online.
Also read: What will drive share market today: US auto tariffs, crude oil, other key things to watch out for
The rupee has recently been under pressure due to escalating trade worries between two superpower economies US and China. After the world’s largest economy US imposed tariffs on Chinese goods of $200 billion, China also hit back at the US and said it would levy tariffs on range of US goods of $60 from June 1.
The global markets bolstered on Wednesday after reports of US delaying the tariff imposition on auto imports to avoid conflict with EU and Japan. The Wall street also got support after the US Secretary Steven Mnuchin indicated towards resolving steel and aluminium tariffs with Mexico and Canada”
Today, the headline indices- Sensex and Nifty opened slightly higher on the back of mixed global cues. While the Sensex is up about 30 points to 37,144, the Nifty is trading above the 11,150-mark.