Rupee opens 5 paise higher at 71.67 against US dollar

The rupee on Monday opened five paise higher at 71.67 against the US dollar amid rise in crude oil prices and Asian equities. 

The domestic unit continued its winning momentum for a third session in a row on Friday, rising 12 paise to settle at 71.72. 

On a weekly basis, it, however, lost 30 paise to the US dollar. 

Continuing their selling spree, foreign investors withdrew a net sum of Rs 1,263 crore from the Indian capital markets in the first week of September amid global headwinds even as the government rolled back enhanced surcharge on FPIs.

They have pulled out more than Rs 30,000 crore from the equities during July-August after Finance Minister Nirmala Sitharaman in her maiden Budget enhanced tax surcharge on FPIs. READ MORE

"Today, USD/INR pair is expected to quote in the range of 71.70 and 72.30," Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL). 

Globally, Asian stocks tip-toed higher on Monday amid a cautious market mood as investors hoped for stimulus to support growth in the world’s major economies. MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.1 per cent. The Shanghai Composite Index was up 0.4 per cent. Australian stocks edged up 0.1 per cent, South Korea's KOSPI rose 0.7 per cent and Japan's Nikkei was up 0.4 per cent, said a Reuters report.  

In commodities market, oil rose after a Saudi official said there would be no change in Saudi Arabia’s OPEC policy as Prince Abdulaziz bin Salman was made the new energy minister for the world’s biggest crude exporter over the weekend. In the currency market, the greenback traded at 106.840 yen, off the one-month peak of 107.235 scaled late last week.

The dollar was capped as US yields came off two-week highs after Friday’s soft US jobs report also raised expectations for a Fed rate cut, Reuters reported.