Rupee recovers, opens 27 paise higher against US dollar

The rupee opened 27 paise higher at 71.17 against the US dollar on Wednesday amid fall in Asian equities and flat crude oil prices. In the previous session, prices of crude oil futures slumped 2 per cent on concerns over global growth. 

The domestic unit skidded by 16 paise on Tuesday to settle at 71.44 amid strengthening of the greenback and heavy selling in domestic equities.

Rupee consolidated in a narrow range of 71.00 and 71.40 for the sixth successive session on Tuesday despite volatility in global crude oil prices. On the other hand, dollar against its major crosses is also consolidating and despite comments from the White House economic advisor, volatility for the greenback remained on the lower side. 

White House economic adviser Larry Kudlow said that forced technology transfers, IP theft and ownership restrictions remained a top priority for the US President Donald Trump. He mentioned that the President said many times how crucial that is, and he’s not going to back down, said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services. 

  

"Today, USD/INR pair is expected to quote in the range of 70.70 and 71.50," Somaiya added. 

On the global front, Asian stocks edged down on Wednesday on mounting signs of slowing global growth and anxiety over a yet-unresolved Sino-US trade dispute, Reuters reported. 

Back home, the domestic equities opened flat. At 09:30 am, the S&P BSE Sensex was trading  42 points higher at 36,487 levels while the NSE's Nifty50 index was at 10,938 levels, up 15 points.