Indian Rupee Opens 5 Paise Higher At 71.29 Against US Dollar

| February 20 , 2019 , 11:51 IST

The Indian rupee on Wednesday opened 5 paise higher at 71.29 against the US dollar on account of some selling in American currency by banks and exporters.

The local currency on Monday weakened by 11 paise against the greenback after trade deficit for January widened compared to the previous month.

However, on the domestic front, rally on global crude oil prices has also weighed on the overall market sentiment.

“Today, USDINR pair is expected to quote in the range of 71.20 and 71.70,” Motilal Oswal Financial Services said.

He also stated, in January, merchandise exports rose 3.7% from a year earlier to USD 26.36 billion, while imports were up 0.01% to USD 41.09 billion. Gold imports in January rose 38% (YoY) to USD 2.31 billion, widening the trade deficit to USD 14.73 billion compared to USD 13.08 billion in the previous month, said Motilal Oswal.

The dollar fell against its major crosses after the US President proposed a 60-day extension beyond the March 1st deadline. If both countries fail to strike a deal, it will turn the market more risk-averse and trigger a sharp sell-off in risky assets, according to the broker's report.