Rupee opens at 69.81, 19 paise lower against US dollar

The rupee on Wednesday opened 19 paise lower at 69.81 against the US dollar. The domestic currency on Tuesday recovered from the day's low to close higher by five paise at 69.62 on some dollar selling by banks and exporters.

Back home, the RBI again received overwhelming response for its second three-year dollar-rupee swap auction where it received bids worth $18.65 billion compared with its promise to take in $5 billion. With this move, the banking system will have cash injection of nearly Rs 60,000 crores.

"While the overwhelming response is a surprise, the cut-off premium, the threshold for banks to receive any allotment, was pegged at 838 paise, up from 776 in the first auction higher than the equivalent market rate. Today, USD/INR pair is expected to quote in the range of 69.40 and 69.95," says Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL).

On the global front, crude oil prices inched lower on signs that global markets remain adequately supplied despite a jump to 2019 highs this week on Washington’s push for tighter sanctions against Iran. Crude futures rose to 2019 highs earlier in the week after the United States said on Monday it would end all exemptions for sanctions against Iran, demanding countries halt oil imports from Tehran from May or face punitive action from Washington.

In the equity market, Asian stocks rose on Wednesday morning after upbeat earnings helped the Nasdaq and S&P 500 indexes reach record closing highs on Wall Street overnight, while oil retreated from its near six-month highs, Reuters reported. 

The US dollar index, which tracks the greenback against a basket of six major rivals, eased 0.03 percent to 97.606. The dollar was down 0.04 per cent against the yen to 111.82, said a Reuters report.