Rupee trades flat in early deals; opens at 71.25 against US dollar

The rupee on Friday opened 1 paisa lower at 71.25 against the US dollar. The domestic unit ended 11 paise lower at 71.24 on Thursday as rising oil prices and a strengthening greenback weighed on the market sentiment.

Rupee consolidated in the range of 70.70 and 71.40 levels for the fifth successive session on Thursday. Global crude oil prices on Thursday witnessed selling pressure on higher levels after US crude oil exports hit an all-time high as output from the nation’s shale fields continues to surge, said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services. 

"Today, USD/INR pair is expected to quote in the range of 71.05 and 71.50," Somaiya said. 

On the global front, Asian shares were flat in early trade on Friday following a fall on Wall Street, with a deteriorating global economic outlook outweighing more signs of progress in trade talks between China and the United States, Reuters reported. 

The US dollar was barely changed against the yen at 110.66, while the euro inched slightly higher to buy $1.1340. The dollar index, which tracks the greenback against a basket of six major rivals, was steady at 96.586.

In the commodity market, US crude dipped 0.25 per cent at $56.82 a barrel.