The rupee depreciated nearly 9 paise to 71.31 against the US currency in early trade on Thursday following some buying in American currency by banks and importers.

The domestic unit settled 14 paise up at 71.22 per dollar on Wednesday.

Concerns over a slowdown in growth weighed on the rupee last year, with economists stressing on the need for more fiscal intervention.

“Today, USDINR pair is expected to quote in the range of 71.30 and 71.60,” brokerage firm Motilal Oswal Financial ServicesNSE -0.22 % said.

Market participants will be keeping an eye on the manufacturing PMI numbers from the US and Euro Zone. Better-than-expected manufacturing number from the US could support the dollar on lower levels.

Meanwhile, benchmark equity indices BSE Sensex and NSE Nifty opened higher following firm global cues. The 30-share Sensex was up 125 points, or 0.30 per cent, at 41,430, while the 50-share Nifty index was up 43 points, or 0.35 per cent, at 12,225 at around 9.30 am (IST).

Published On : 02-01-2020

Source : Economic Times