Rupee opens 3 paise higher against US dollar amid steady oil prices

The domestic unit on Monday recovered the lost ground and finally settled 23 paise higher at 69.35 amid the weakening of the greenback against major currencies.

The rupee on Tuesday opened three paise higher at 69.32 against the US dollar amid steady crude oil prices. 

The domestic unit on Monday recovered the lost ground and finally settled 23 paise higher at 69.35 amid weakening of the greenback against major currencies.

Rupee rose primarily on back of broad weakness in the dollar against its major crosses. In the last few session the dollar has been weighed down following expectation that the Federal Reserve in the near future is expected to cut rates, said Gaurang Somaiya, Research Analyst (Currency) at the Motilal Oswal Financial Services (MOFSL). "Today, USD/INR pair is expected to quote in the range of 69.05 and 69.70," Somaiya added. 

On Monday, foreign investors bought shares worth Rs 207.33 crore on a net basis on Monday, provisional data showed.

On the global front, Asian stocks were largely tepid in the early trade on Tuesday. Mainland Chinese stocks declined, with the Shanghai composite slipping 0.43 per cent and Shenzhen component falling 0.51 per cent. The Shenzhen composite also fell 0.634 per cent, reported CNBC. 

In the commodity market, oil prices were steady on Tuesday, supported by worries over conflict between Iran and the United States while gold hit near six-week highs. Additionally, expectations of more dovish talk from the Federal Reserve pushed down Treasury yields and the dollar in the early trade, Reuters reported.