Rupee opens 3 paise lower at 70.49 against US dollar

The rupee on Tuesday opened 3 paise lower at 70.49 against the US dollar. The domestic unit Monday dropped by 88 paise, its biggest single-day loss in more than three months, to close at 70.46 against the US currency as oil prices rebounded and the US currency gained strength.

Forex dealers said increased dollar demand from importers amid firming global crude oil prices and a strong dollar weighed on the rupee sentiment.

"The rupee has declined on account of sharp rebound in the crude oil prices in the international market. Further India's GDP and fiscal deficit data disappointed the market. Hence the rupee is under pressure," said Rushabh Maru - Research Analyst, Anand Rathi Shares and Stock Brokers.

On the global front, Asian shares fell in early trade as a relief rally sparked by a truce in the US-China trade war gave way to doubts on whether the two countries are able to resolve their differences before a 90-day deadline. MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.2 per cent as the Australian market gave up 0.5 per cent and Seoul's Kospi fell 0.6 per cent.

Oil prices rose, extending strong gains from the previous day amid expected OPEC-led supply cuts and a mandated reduction in Canadian output, said a Reuters report.