The Indian rupee opened higher at 69.76 per dollar on Friday morning against the previous close of 69.87 per dollar. Yesterday, the rupee came under pressure amid global growth concerns but the oil prices and FIIs supported the Indian rupee.
The Indian rupee opened higher at 69.76 per dollar on Friday morning against the previous close of 69.87 per dollar. Yesterday, the rupee came under pressure amid global growth concerns and fresh tensions between the US and Mexico. However, easing oil prices and FIIs supported the Indian rupee. The crude oil prices eased on Thursday amid smaller-than-expected fall in US crude inventories and global slowdown concerns. 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 $66.14 a barrel, 73 cents lower than the previous close, while the US WTI was at $56.04 a barrel, down 55 cents from the last settlement.
The USD-INR is likely to trade in the range of 69.8-70.26 on Friday. The rupee traded in range on month-end dollar demand by importers and tracking an overall strength in the greenback. The dollar also traded higher supported by risk-off sentiments following trade war concerns, according to Kedia Advisory.
According to market experts, the rising trade tensions between the two superpower economies- the US and China would last for a long period of time. According to Chinese media, China could restrict the sale of rare earths 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.
The foreign institutional investors (FIIs) bought shares worth Rs 1,665 crore on a net basis, while domestic institutional investors (DIIs) sold shares worth Rs 1,123 crore as on May 30, according to NSE data.
The Indian headline indices- Sensex and Nifty opened higher on Friday ahead of ministry allocation under Narendra Modi regime. Today, the SGX Nifty settled at 11,978.50 level, 0.50 points higher from the previous settlement. Currently, while the Sensex is trading at a level of 40,071.27l, up 239.40 points from the last close, the Nifty50 is trading higher by 74.05 points, at 12,020.40 level, from the previous close.