Rupee opens flat at 70.46 against US dollar amid fall in crude oil prices

The rupee was unchanged at 70.46 against the US dollar in the opening deals on Thursday amid weak Asian cues and fall in crude oil prices.  

On Wednesday, the domestic currency slipped 25 paise to close at 70.46 as continued rise in global crude oil prices weighed on sentiments.

Rupee continued to remain uder pressure and weighed down on back of strength in the dollar against its major crosses and rally in global crude oil prices. In the last few sessions crude has been ralying and extended gains in crude could keep the rupee under pressure. Crude oil rose as the extension of US-China talks in Beijing raised hopes that the world’s two largest economies would resolve their trade standoff, observes Gaurang Somaiya, Research Analyst(Currency) at Motilal Oswal Financial Services. 

"On the domestic front, there is speculation doing round that the government may soon come out with a package to support farmers. Today, USD/INR pair is expected to quote in the range of 70.40 and 71.05," Somaiya added. 

The dollar-rupee January contract on the NSE was at 70.64 in the previous session. January contract open interest declined 6.13 per cent in the previous session, say analysts at ICICIdirect. 

On Wednesday, overseas investors (FIIs) were the net buyers to the tune of Rs 276.14 crore whereas domestic institutional investors (DIIs) bought a total of Rs 439.67 crore, showed NSE data. 

On the global front, Asian shares began cautiously on Thursday, struggling to rise after a multi-day rally as markets await more news on US-China trade talks that have raised hopes of a deal to avert an all-out trade war, Reuters reported. 

Oil prices fell by 1 per cent on swelling US supply. Both oil price benchmarks Brent Crude and WTI had jumped by around 5 per cent the previous day as financial markets around the world surged.