Rupee opens unchanged at 70.49 against US dollar

The rupee opened flat at 70.49 against the US dollar on Monday. The domestic unit Friday weakened by 8 paise to close at 70.49 on rise in demand of American currency from exporters and surge in crude oil prices. 

Rupee continued to consolidate in a narrow range ahead of the important industrial production number that was released on Friday. Data showed IIP rose at a slower pace in November at 0.5 per cent compared to growth of 8.1 per cent in the previous month. 

On the domestic front, market participants will keep an eye on the inflation number that will be released today. "Expectation is that price rise could be slower in December compared to the previous month thereby keeping the rupee supported on lower levels. Today, USD/INR pair is expected to quote in the range of 70.30 and 71.05," said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services. 

Foreign investors have pulled out more than Rs 3,600 crore from the Indian equity markets in the last nine trading sessions, adopting a cautious stance towards the country. This comes following a cumulative net inflow of Rs 8,584 crore in the equity markets by Foreign Portfolio Investors (FPIs) during November and December, PTI reported. 

Ón the global front, Asian shares slipped in the early trade as investors appeared wary of China trade data. Despite US President Donald Trump launching trade war against Beijing last year, China on Monday announced that its 2018 trade surplus with Washington was its largest in more than a decade.

MSCI’s broadest index of Asia-Pacific shares outside Japan stumbled 0.7 per cent after climbing to the highest since early December on Friday, with Chinese and Hong Kong shares the biggest losers, Reuters reported. 

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