Indian Rupee opens on positive note, up 4p higher against US$

Indian rupee today opened on a positive note and was trading marginally higher by 4 paise at 71.95 to the US dollar. The domestic currency had depreciated to a new record low of 72.11 per US dollar on Thursday, amid fears of high global crude oil prices, and an escalation in the trade war and outflows of foreign funds from the country`s equity market.
 
The positive sentiment in Indian rupee today is due to slight weakness seen in the American unit against some currencies including yen on fears that US President Donald Trump would take up trade issues with Japan. 
 
The dollar trend overseas supported the rupee but losses in domestic equities kept investors mood dampened, capping the domestic currency's gains, said a PTI report.
 
Rupee yesterday, plunged to new record low of 72.11 a dollar in intra-day trade before closing at 71.99, showing a steep 24 paise fall.
 
"Rupee was surprisingly under pressure today, unlike as overnight other Asian currencies which were tad stronger," Edelweiss Securities` Head of Forex and Rates Sajal Gupta, told IANS, adding "Markets are expecting some support from policy makers in terms of a separate window for OMCs (Oil Marketing Companies) and more relaxation on buyers credit and ECB (External Commercial Borrowing) guidelines. RBI intervened at various levels but was not very effective to contain the movement."
 
Notably, the RBI is known to enter the markets via intermediaries to either sell or buy US dollars to keep the rupee in a stable orbit. 
 
According to Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, "Brent crude prices are showing signs of recovery, which is a negative for rupee. Tonight, all eyes will be on Trump`s announcement of tariffs on Chinese imports." 
 
"If US backs off, then it can be a positive development for rupee, otherwise negative. rupee has a strong correlation with the Chinese currency. Whatever will be the decision of the US administration on trade with China, according Chinese currency will react," he reportedly stated.

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The benchmark Sensex, however, fell 165.72 points, or 0.43 per cent, to 38,077.09 in early trade today.