The rupee gained 5 paise to 71.26 against the US dollar on Tuesday amid weakening of the greenback in the overseas market. The domestic currency opened almost flat at 71.32 on the last day of the calendar year 2019.

The rupee on Monday appreciated by 4 paise to settle at 71.32 against the greenback even as crude oil prices surged.

Volatility for the dollar was confined to a narrow range after the White House’s trade adviser said the US-China Phase 1 trade deal would likely be signed in the next week, but said confirmation would come from President Donald Trump or the US Trade Representative.

Hopes for a US-China trade deal helped keep world stocks positive although neither side has released many specific details of the agreement, and no text has been released yet.

“Today, USDINR pair is expected to quote in the range of 71.40 and 71.90,” Motilal Oswal Financial Services said.

Euro rose to the highest level in four and a half months following optimism over US-China trade relations. In the next couple volatility for major crosses would remain low as major global equity markets will remain shut tomorrow on account of New Year holidays.

For today, from US, market participants will be keeping an eye on the consumer confidence and better-than-expected number could support the dollar at lower levels.

Published On : 31-12-2019

Source : Economic Times