The rupee on Tuesday opened 6 paise lower at 68.98 against the US dollar following a spike in crude oil prices. Strong US dollar against major currencies further weighed on the rupee sentiment.

Oil prices jumped overnight on concerns that Iran's seizure of a British tanker last week may lead to supply disruptions in the Middle East Gulf, although gains were capped as Libya resumed output at its largest oil field. 

The rupee depreciated by 12 paise to close at 68.92 against the US dollar on Monday. 

Hopes of a rate cut have helped US markets rise to fresh record levels after a slump witnessed in May following uncertainty related to trade talks. In the next couple of days, ECB too is expected to maintain a dovish stance and expectation of further stimulus is keeping the Euro under pressure. 

“Today, USDINR pair is expected to quote in the range of 68.65 and 69.05-69.20,” brokerage firm Motilal Oswal Financial ServicesNSE -1.28 % said in a report. 

The dollar rose against its major crosses for the third successive session following better-than-expected economic number. The greenback has been rallying despite the expectation that the Fed could adapt to a more dovish stance. 

In this week, market participants will be keeping an eye on the advance GDP number that will be released from US and weaker-than-expected number could keep the gains capped for the dollar. 

Published On : 23-07-2019

Source : Economic Times