Rupee slips back to 70 level against US dollar in early trade

The rupee on Thursday slipped four paise to touch the crucial psychological level of 70 against the US dollar. The domestic currency on Wednesday declined by 24 paise to close at 69.86, weighed down by a strong dollar sentiment and high demand for the greenback from importers.

Rupee consolidated in a broad range on Wednesday but came under pressure in the second half of the session, primarily on the back of strength in the dollar against its major crosses and as global crude oil prices rallied after US ended waivers for countries importing Iranian oil.  

India will stop importing crude oil from Iran following the US move to end sanction waivers, and will use alternate supply sources such as Saudi Arabia to make up for the lost volumes, news reports said.  

"Today, USD/INR pair is expected quote in the range of 70.05-69.80 and 70.40," says Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services.

On the global front, Asian shares slipped on Thursday as a surprise deterioration in German business morale rekindled fears of slowing global growth, while oil prices pulled back slightly after a sharp run-up earlier in the week. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.2 percent, while Japan’s Nikkei average edged up 0.3 per cent to 22,264.81 points.

In the overnight trade, US stocks settled lower.