The Indian rupee opened higher against the US dollar on Monday tracking gains in domestic equities. “Rupee remained resilient to higher dollar index amid strong foreign fund inflows in the equity market. Broadly, the local currency is consolidating in the range of 72 to 71 a dollar. CPI and IIP would be keenly watched local data point this week,” V K Sharma, Head PCG & Capital Markets Strategy said. Around 10.45 AM, the Indian rupee was trading at 71.21 a dollar, up 0.13 per cent as against the previous close of 71.30 against the US dollar. On the year-to-date (YTD) basis, the Indian rupee has weakened by 0.23 per cent.
The Indian rupee has touched a high of 71.19 and a low of 71.26. Markt participants will be eyeing inflation and IIP data, which is scheduled to be released on Wednesday. The National Health Commission informed that the death toll from coronavirus has risen to 1,016 in China.
In commodities, oil prices rose more than 1 per cent on Tuesday as recent sharp falls have encouraged investors holding short positions to book profits, but the market remains jittery over the Wuhan virus, which has now killed more than 1,000 in China. Brent crude rose 79 cents, or nearly 1.5%, to $54.06 a barrel, while U.S. West Texas Intermediate was up 63 cents, or about 1.3%, to $50.20. Global benchmark Brent crude has lost 7.3% so far this month as the coronavirus outbreak threatened demand from top consumer China, as per the Reuters news.
On the domestic equity front, Sensex and Nifty were trading higher ahead of the Delhi Assembly Elections outcome. The S&P BSE Sensex was trading 380 points, or 0.93 per cent, higher at 41,360 points, while the broader Nifty 50 index was ruling at 12,150 points, up 119 points or 1 per cent.