The rupee opened three paise higher at 70.15 against the US dollar on Monday. The domestic unit on Friday fell by 48 paise to close at 70.18 against the US currency due to month-end dollar demand and sharp losses in domestic equities.
Despite losses on Friday, the rupee gained 172 paise or 2.4 per cent on weekly basis amid a slide in crude oil prices which touched $53.26 per barrel, PTI reported.
Rupee in the last few sessions has been strengthening against the US dollar but as the holiday week starts volatility in case of the rupee could start to move lower. Last week, dollar broadly came under pressure after the Federal Reserve in its policy statement mentioned that rate hike in the coming year could be restricted to two compared to earlier estimates of three rate hikes next year, notes Gaurang Somaiya, Research Analyst(Currency) at Motilal Oswal Financial Services.
On the other hand, some reports showed that the US President may be considering firing Fed Chairman as his frustration with the central bank chief intensified following this week’s interest-rate hike. "Today, USD/INR pair is expected to quote in the range of 69.70 and 70.50," says Somaiya.
As per reports, foreign investors have pumped in close to Rs 40 billion in the Indian capital markets so far in December on strengthening rupee and easing global crude oil prices.