Rupee opens at one-month high against US dollar amid positive global cues

The rupee on Friday opened 18 paise higher at 70.96, its one-month high level against the US dollar, amid positive global cues. The domestic unit on Thursday climbed 52 paise to end at 71.14 as signs of easing trade tensions between the US and China buoyed global markets.

Easing crude oil prices and fresh foreign capital inflows provided further support, forex traders said.

The Indian currency has appreciated by 125 paise in the last six trading sessions, as per reports. 

Foreign institutional investors (FIIs) bought equities worth Rs 783.55 crore on Thursday, according to provisional exchange data.

On the domestic front, inflation based on the Consumer Price Index (CPI) stood at 3.15 per cent in July this year. Compared year-over-year (YoY), it was 3.69 per cent in August 2018. The IIP data showed a significant slowdown in the manufacturing sector, which grew at 4.2 per cent in July 2019 as compared to 7 per cent a year ago.

"Today, USD/INR pair is expected to quote in the range of 70.70 and 71.40," said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL).

On the global front, Asian stocks advanced on Friday as hints of progress in US-China trade talks and aggressive stimulus from the European Central Bank helped counter worries about a global economic slowdown. MSCI’s broadest index of Asia-Pacific shares outside Japan ticked up 0.3 per cent though mainland China and South Korea were closed for public holidays. Japan’s Nikkei rose 1.0 per cent to four-month highs, Reuters reported.

In commodities, oil prices were on course to post weekly losses, on continued worries about weakening demand, the report added.