Rupee opens 10 paise higher at 70.34 against US dollar

The rupee on Wednesday opened 10 paise higher at 70.34 against the US dollar. The domestic currency on Monday recovered 7 paise to close at 70.44 on the back of gains in equity markets while US-China trade-related concerns and rising crude oil prices continued to weigh on investor sentiment.

"Strong recovery in the domestic equity markets and US Futures helped the rupee maintain strength throughout the session," said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 2,011.85 crore on a net basis Tuesday, provisional exchange data showed.

On Wednesday, Asian stocks struggled near a 3-1/2-month low on lingering concerns over the economic impact of a US-China trade war, although an overnight bounce on Wall Street helped limit the losses. MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.05 per cent. 

The dollar traded a shade higher at 109.675 yen while the dollar index against a basket of six major currencies was nearly flat at 97.534 after gaining 0.2 per cent the previous day, Reuters reported. 

In commodities, oil prices eased. Brent crude futures were at $70.90 a barrel at 6:30 am, down 41 cents, or 0.7 per cent, from their last close. Brent closed up 1.4 per cent on Tuesday.