NEW DELHI: The rupee on Monday opened 12 paise down at 69.07 against the US dollar on account of some buying in American currency by banks and importers. 

After rising to the highest level in seven months following sustained fund inflows by the foreign institutional investors, the rupee came under pressure on Friday after the greenback strengthened against its major crosses. The local currency on Friday slipped 12 paise to close at 68.95 against the greenback amid some selling in domestic equities. 

“Rupee was weighed down also on the back of rise in global crude oil prices. On the domestic front, inflation and industrial production were disappointing that restricted major appreciation for the currency,” Motilal OswalNSE -0.28 % Financial Services said in a report. 

This year, the domestic currency has been one of the best performing currency in the Asian pack so far and consistent fund inflows are the major trigger for the appreciation. 

“Today, USDINR pair is expected to quote in the range of 68.70 and 69.40,” Motilal Oswal said in a report. 

The US dollar rose against its major crosses despite the Federal Reserve decided to take a pause in raising rates and hinted not to raise rates for the whole of the year. This week, market participants will be keeping an eye on the final GDP number to gauge a view for the greenback. Expectation is that the US could grow at 2.4 per cent in Q3 compared to previous estimate of 2.6 per cent. 

Published On : 25-03-2019

Source : Economic Times