The rupee opened four paise lower at 71.07 against the US dollar on Friday amid positive Asian equities and rise in crude oil prices. On Thursday, the domestic unit reversed its four-day losing streak by recovering 21 paise to settle at 71.03.
Rupee came under pressure in the first half of the session but most of the losses were eroded in the later half. The local currency rose despite an uptick in global crude oil prices after reports that US was to begin lifting tariffs imposed on Chinese imports.
The trade war might not be over yet, but the sudden hike in the US stock markets is an indication of the trades that are being held back by some uncertainty over tariffs and deliberations, said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services.
Today, USD/INR pair is expected to quote in the range of 70.70 and 71.40, th analyst added.
On the global front, oil prices rose on Friday after a report from the Organization of the Petroleum Exporting Countries showed its production fell sharply last month, easing fears about prolonged oversupply. US West Texas Intermediate (WTI) crude futures were at $52.57 per barrel at 8:23 am, up 50 cents, or 1 per cent, from their last settlement. International Brent crude oil futures were up 45 cents, or 0.7 per cent, at $61.63 per barrel, Reuters reported.
Asian stocks advanced in the early trade as a report of progress in US-China trade talks stirred hopes of a deal in their tariff dispute and supported risk sentiment.