Rupee makes sharp U-turn, opens 23 paise lower against dollar

Making a sharp U-turn, the rupee on Monday opened 23 paise lower at 73.80 against the US dollar. Minutes later, the currency slipped 32 paise to hit 73.89 levels. 

The domestic currency strengthened by 55 paise to settle at 73.57 on Friday, marking its biggest gain in over three weeks as global crude prices eased and domestic indices staged a smart rebound. 

This was its biggest gain since September 19, when it had jumped 61 paise. 

The Indian rupee has been on a downhill slide for most of the year, falling for six straight months, the longest stretch since 2002. Since 2013, the domestic unit has lost around 20.8 per cent against the greenback, said Pushkar Mukewar, Co-Founder and Co-CEO, Drip Capital. 

Nirmal Bang Securities in its daily currency report said, "An open below 73.70 can lead more weakness in the pair but a short reversal can be expected from current levels. The pair is still trading in a strong zone by remaining above all the important moving averages on the daily charts."

On the global front, crude oil futures rose sharply as geopolitical tensions over the disappearance of a prominent Saudi journalist stoked worries about supply, although concerns about the long-term outlook for demand dragged on prices.

Asian shares slipped as worries over Sino-US trade disputes, a possible slowdown in the Chinese economy and higher US borrowing costs tempered optimism despite a rebound in global equities late last week, Reuters reported. 

Back home, the domestic stocks opened flat. At 09:17 am, the S&P BSE Sensex was trdaing at 34,732, down 2 points while NSE's Nifty50 index was 1 point lower at 10,471.35.

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel