Rupee trades lower at 71.70 per dollar
The Indian rupee recovered marginally but still trading lower by 24 paise at 71.70 per dollar, with domestic equity market are trading in red with Nifty below 11,900.
The local currency opened lower by 29 paise at 71.75 per dollar versus Monday’s close 71.46.
On November 11, the rupee tumbled by 19 paise to a near one-month low at 71.46 against the US dollar after fresh concerns over US-China trade deal and Hong Kong unrest kept forex market participants edgy.
The Sensex was down 86.98 points at 40,258.10, while Nifty was down 31.60 points at 11,881.90.
The currency market was shut on November 12 on account of Guru Nanak Jayanti.
For the coming month, we are expecting rupee to trade mixed to bullish amid strengthening of US dollar with positive cues between US and China trade talks. In addition, rupee could also find weakness as hopes of deep supply cuts by the OPEC member countries during the upcoming OPEC meeting on 6th December could lift up crude prices, eventually putting pressure on the rupee, said Choice Broking.
Though the Indian equity markets have showcased revival in the past few weeks, however, global factors hold dominance on the rupee movement in the international level.
Gold prices remain to be steady which has also affected the rupee though the festive season of Diwali has ended. However, major upside could also be capped as domestic markets hope for revival of the Indian economy in various sectors after slowdown witnessed since the start of the year 2019.
In conclusion, the above factors are more likely to bring sideways to bullish trend in the Indian rupee with respect to dollar. We expect Indian currency to trade in the range of 70.56-72.62, it added.
Oil prices dipped on Wednesday as prospects for a trade deal between the United States and China dimmed, weighing on the outlook for the global economy and energy demand.
The dollar clung to most of its recent gains on Wednesday after U.S. President Donald Trump said a trade deal with China was “close” but offered no new details on negotiations to send the greenback higher.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.