The rupee on Monday opened 6 paise higher at 70.76 against the US dollarNSE -0.97 % on account of some selling in the American currency by banks and exporters.

Earlier, the rupee gained for the whole of last week despite weaker-than-expected economic numbers on the domestic front, but on likely dollar inflow following ArcelorMittal’s acquisition of Essar SteelNSE 0.00 %.

Most market participants remained cautious ahead of the important December 15 deadline when US was expected to impose additional import tariff on Chinese goods.

On Friday, US and China announced a “Phase one” agreement that reduces some US tariffs in exchange for what US officials said would be a big jump in Chinese purchases of American farm products and other goods.

China has agreed to import at least $200 billion in additional US goods and services over the next two years on top of the amount it purchased in 2017.

“Today, USDINR pair is expected to quote in the range of 70.50 and 71.05,” brokerage firm Motilal Oswal Financial Services said.

Pound also rose after PM Johnson won with a thumping majority that will allow him to end three years of political paralysis and take Britain out of the European Union by January 31.

The local currency on Friday closed almost flat at 70.82 against the greenback as rising crude oil prices after reports of a US-China trade deal knocked off sharp gains.

Published On : 16-12-2019

Source : Economic Times