Rupee opens 13 paise higher at 70.01 against US dollar

The rupee opened 13 paise higher at 70.01 against the US dollar on Monday amid weak global cues. The domestic unit on Friday ended lower by 14 paise at 70.14 in line with fall in domestic equities market.

In the last few sessions, rupee has risen primarily on back of fund inflows. FIIs in this year until now have poured in funds worth $1.2billion in equity and debt segment thereby keeping the currency supported on lower levels. 

This week, market participants will be keeping an eye on inflation and industrial production number; expectation is that both inflation and IIP could disappoint and could restrict major appreciation for the rupee, said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL).

"Today, USD/INR pair is expected to quote in the range of 69.80 and 70.50," Somaiya added. 

In the equity market, overseas investors pumped in a net Rs 2,741 crore into the Indian capital markets in the first five trading sessions of March, mainly due to positive market sentiment.

On the global front, Asian shares were muted on Monday after US employment data raised doubts about the strength of the global economy, while investor jitters ahead of crucial Brexit votes in the UK parliament this week weighed on the pound.

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed from Friday’s three-week low, while China’s blue-chip CSI300 index gained 0.5 per cent. Japan’s Nikkei gained 0.2 per cent.

In the commodity market, oil prices rose in the early trade.