Rupee opens at 71.23/$ amid weak cues in global markets
The Indian rupee has opened at 71.23 per US dollar. This implies an appreciation of 8 paise from its previous close of 71.31 per US dollar.
On Friday, the rupee appreciated by 14 paise Friday to close at 71.31 against the US dollar on persistent foreign fund inflows even as the greenback strengthened overseas amid fresh concerns over global growth.
This was the fourth successive session of gain for the domestic currency, during which it has climbed 49 paise.
“Reduction in interest rates and relaxation of foreign investment limits bodes well for the rupee in expectation of overseas inflows.
“So far this month, overseas investors bought USD 297.10 million in equity while they sold worth USD 304.70 million in debt market,” said V K Sharma, Head – PCG and Capital Markets Strategy at HDFC Securities.
Fears of a global economic slowdown resurfaced after US President Donald Trump said he does not expect to meet his Chinese counterpart Xi Jinping before the March 1 deadline in trade war negotiations between the two superpowers.
Forex traders said firming crude oil prices and heavy selling in domestic equities weighed on the local unit.
(With inputs from PTI)