The Indian rupee opened lower at 69.75 per dollar on Wednesday morning against the previous close of 69.69. Yesterday, the rupee came under pressure amid rising trade tensions between the two superpower economies- the US and China and rising crude oil prices. The oil prices surged on Tuesday amid supply concerns and US-China trade conflict. Last week both Brent crude and US WTI fell by 4.5 per cent and 6.4 per cent respectively. The international benchmark for oil was last seen at $69.62 a barrel, 49 cents lower from the previous close, while the US WTI was at $58.53 a barrel, 61 cents down from the last close.
The USD-INR is likely to trade in the range of 69.47-69.85 It ended with losses on account of importers’ month-end dollar demand amid strong dollar and higher crude oil prices, Kedia Advisory said in a note.
According to market experts, the rising trade tensions between the two super power economies the US and China would linger for long period of time. US President Donald Trump on Monday said the US was not ready to make a deal with China and the trade tariffs might go up significantly. However, he also said that he expected a deal in future. The yield on the benchmark 10-year Treasury note fell to a 19-month low on Tuesday as Wall Street feared that the U.S.-China trade would last longer and adversely affect the GDP growth.
On Tuesday, while foreign institutional investors (FIIs) sold shares worth Rs 501 crore on a net basis, the domestic institutional investors (DIIs) bought shares worth Rs 269 crore, according to NSE data.
The Indian headline indices- Sensex and Nifty opened lower on Wednesday on account of weak global markets. The SGX Nifty ended in red at 11,922 level, 1.50 points down from the previous close.Currently, while the Sensex is trading at 39,729.11 level, 20.62 points lower than the last close, the Nifty50 is also trading down at11,921.60 level, 7.15 points down from the last close.