The Indian rupee opened higher at 69.72 per dollar on Thursday morning against the previous close of 69.83 per dollar. Yesterday, the rupee came under pressure amid global growth concerns.
The Indian rupee opened higher at 69.72 per dollar on Thursday morning against the previous close of 69.83 per dollar. Yesterday, the rupee came under pressure amid global growth concerns. The crude oil prices surged on Thursday 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, 17 cents higher than the previous close, while the US WTI was at $59.14 a barrel, up 33 cents from the last settlement.
The USD-INR is likely to trade in the range of 69.73-70.39 per dollar. The rupee fell yesterday as broader shares struggled to find ground and oil prices fell. Nationalised banks are buying mostly on behalf of oil importers month-end dollar demand as well.
The dollar strengthened after the US Conference Board said its gauge on US consumer confidence surged in the month of May, Kedia Advisory said in a note.
According to market experts, the rising trade tensions between the two superpower economies- the US and China would linger for a long period of time. According to Chinese media, China could restrict the sale of rare earth in a bid to strike back in a trade war with the world’s largest economy US. The rare earths are a group of elements with unique properties that are used in cell phones, hybrid cars and cancer treatment. US President Donald Trump on Monday had 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 Wednesday, while foreign institutional investors (FIIs) sold shares worth Rs 304.27 crore on a net basis, the domestic institutional investors (DIIs) sold shares worth Rs 189.58 crore, according to NSE data.
The Indian headline indices- Sensex and Nifty opened flat on Thursday amid fears of the global slowdown and rising trade tensions between the US and China. The SGX Nifty ended higher at 11,868 level, up 4 points from the last close. Currently, while the Sensex is trading at 39,584.91 level, 82.86 points higher than the last close, the Nifty50 is also trading higher by 24.05 points, at 11,885.15 level, from the last close.