Rupee opens 22 paise lower at 70.14 against US dollar

The rupee on Monday opened 22 paise lower at 70.14 against the US dollar amid weak global cues and soft crude oil prices. The domestic unit on Friday snapped its four-day losing streak to end two paise higher at 69.92.

During the week, the rupee fell by 70 paise. 

"The rupee is under pressure as the trade tension escalated between US and China. Global markets are also under pressure hence the rupee is weakening. In coming sessions, volatility is expected to rise in the rupee as the date of election results approaches," said Rushabh Maru, Research Analyst - Currency and Commodity, Anand Rathi Shares and Stock Brokers.

Today, USD/INR pair is expected to quote in the range of 69.7 and 70.50, says Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services.

Reversing their three-month buying streak, foreign investors pulled out a net Rs 3,207 crore from the Indian capital markets in the first seven trading sessions of May amid the US-China trade tensions and uncertainty over the election results.

On the global front, Asian shares were trading in the red on growing uncertainty over whether the United States and China will be able to reach a deal to end their escalating trade war. MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.4 per cent, nearing its two-month low marked on Thursday, Reuters reported. 

In commodity markets, oil prices were softer in line with the general mood of risk aversion. US crude was last down 0.1 per cent at $61.54 a barrel, while Brent crude futures stood flat at $70.65.