The Indian rupee erased morning losses and trading at day's high at 71.54 per dollar.

It opened lower by 5 paise at 71.59 per dollar versus previous close 71.54.

It touched an intraday low of 71.71 per dollar.

Rupee continued to remain under pressure and was weighed down for the second successive session as signing a trade deal between US and China still remains uncertain, said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services Private.

This week, volatility for major crosses will be influenced by more updates on the Brexit front. There is still a belief that UK has a chance to avoid a messy exit from the European Union at key negotiations this week.

We expect the rupee remain under pressure but pace of the weakness could remain restricted from these levels and the currency could quote in the range of 71.20 and 71.80(Spot), he added.

According to PTI, rupee on Tuesday dived 31 paise to end at a nearly one-month low against the US currency due to heavy dollar buying amid fresh concerns over the progress of China-US trade talks.

Crude oil prices dropping more than half a per cent and gains in the equity markets, however, helped the local unit contain losses, it added.

The dollar-rupee October contract on the NSE was at 71.64 in the previous session. Open interest increased 3.06% in the previous session, said ICICIdirect.

We expect the USD-INR to find supports at lower levels. Utilise downsides in the pair to initiate long positions, it added.

Published On : 16-10-2019

Source : Money Control