The Indian rupee opened lower at 69.65 per dollar on Tuesday morning against the previous close of 69.49. Yesterday, the Indian currency opened higher at 69.40 and further rose to hit the day’s high of 69.34.The market experts expect rupee to remain higher for a couple of weeks after BJP’s sweeping success in the elections as the continuity in administration would bring stability in reform policies and create job opportunities. Crude oil prices and the foreign investment flows will also have an impact on the Indian currency.
The USD-INR is likely to trade in the range of 69.23-69.79. Rupee ended with flat node on Monday amid selling by foreign banks tracking an overall weakness in the greenback and helped by FII inflows into local stocks, according to Kedia Advisory.
The crude oil prices rose on Tuesday on account of supply cuts by OPEC club and US sanctions on Iran and Venezuela fuel exports. While the Brent crude was last seen at $70.02 per barrel, 9 cents or 13 per cent lower than the previous close, the US WTI was up 46 cents at $59.09.49 from the last close. WTI did not trade on Monday on account of a public holiday in the US.
On Monday, while the Foreign institutional investors or FIIs bought shares worth Rs 1,215 crore on a net basis, the domestic institutional investors (DIIs) sold shares worth Rs 328 crore, according to NSE data.
The Indian headline indices- Sensex and Nifty opened positive on Tuesday. The stock markets have been on a rally since the exit poll announced BJP’s victory with a vast majority in Lok Sabha elections. The SGX Nifty ended in red at 11,922 level, 1.50 points down from the previous close.Yesterday, while the Sensex ended 248 points higher at 39,683, the Nifty50 settled up 81 points at a level of 11,925.