Rupee slips on Indo-Pak tensions; opens 29 paise lower

The rupee on Tuesday opened 29 paise lower at 71.26 against the US dollar amid reports of fresh geopolitical tensions between India and Pakistan. According to news reports, Pakistan army spokesperson Major General Asif Ghafoor on Tuesday claimed that the Indian Air Force (IAF) had violated the Line of Control (LoC).

Indian Defence Ministry spokesperson, meanwhile, said he had ‘no information’ of any air strike on Pakistan, according to Bloomberg. READ MORE

"The USD/INRpair has made a red candle on the daily chart with showing strong support at its 50-day simple moving average (SMA)(70.95). The pair is showing strong resistance at its 20-day SMA (71.35)," said Nirmal Bang Securities in its daily currency report today. 

"If the pair remains below 71.15, it will continue to weaken towards 70.9- 70.8 levels. On the upper side it can test 71.35," the brokerage added. 

On the global front, oil futures tumbled more than 3 per cent on Monday after US President Donald Trump called on OPEC to ease its efforts to boost crude prices, which he said were “getting too high.” However, the prices were steady on Tuesday.