Rupee opens 28 paise higher against US dollar as crude oil price eases

Regaining some of its lost ground, the rupee on Wednesday opened 28 paise higher at 71.50 against the US dollar as crude oil prices cooled off after Saudi Arabi said it will restore lost oil production by September-end. The domestic unit on Tuesday weakened by another 18 paise to settle at 71.78 against the US dollar as investors fretted over higher crude oil prices. 

Oil prices spiked up to 20 per cent on Monday after drone attacks on Saudi's two oil facilities over the weekend knocked out 5 per cent of global supplies. 

Saudi Arabia sought to reassure markets after the attack on Saturday halved oil output, saying on Tuesday that full production would be restored by month's end.
 

Energy Minister Prince Abdulaziz bin Salman said on Tuesday that average oil production in September and October would be 9.89 million barrels per day and that the world's top oil exporter would ensure full oil supply commitments to its customers this month, Reuters reported. 

Back home, foreign investors continued with their equity selling spree in the Indian market. Foreign institutional investors (FIIs) sold equities worth Rs 808.29 crore on Tuesday, exchange data showed.

"Today, USD/INR pair is expected to quote in the range of 71.40 and 72.05," said Motilal Oswal Financial Services (MOFSL) in its daily currency report. 

In the equity market, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.13 per cent while Japan’s Nikkei was flat. Wall Street shares ticked up a tad on Tuesday with the S&P 500 gaining 0.26 per cent.