Rupee opens 27 paise higher at 69.75 against US dollar

The rupee opened 27 paise higher at 69.75 against the US dollar on Friday amid weak global cues. 

The domestic unit surrendered all its early gains and closed 36 paise lower at 70.02 on Thursday after investors looked past the euphoria over BJP's election victory and shifted focus to macro-economic developments that will set the tone for the forex market going ahead.

As the general election is over with the Narendra Modi's Bharatiya Janata Party's resounding victory, a host of domestic and global factors like crude oil prices, trade tussle between the US and China and the upcoming RBI monetary policy will mainly influence the forex market movements, said analysts.

Foreign institutional investors (FIIs) were net buyers in the capital markets, buying shares worth 1,352.20 crore on Thursday, according to exchange data.

"Today, USD/INR pair is expected to quote in the range of 69.40 and 70.05," said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL). 

On the global front, Asian shares hobbled near four-month lows on Friday and crude oil plunged on deepening trade tensions between the US and China. The dollar hit a high of 98.371 against a basket of six major currencies overnight. In commodities, US crude rebounded 0.6% to $58.25 a barrel, after Thursday’s 5.7 per cent fall, Reuters reported.