Rupee opens 34 paise up at 70.56 against dollar

The rupee on Friday opened 34 paise higher at 70.56 against the US dollar on account of softening crude oil prices in the international market.

Oil prices fell on Friday, pulled down by OPEC’s decision to delay a final decision on output cuts, awaiting support from non-OPEC heavyweight Russia. Brent crude was trading sub-$60 per barrel in the international benchmark.

The local currency depreciated by 44 paise to close at 70.90 against the US dollar on Thursday following a sharp decline in equity markets. The benchmark equity indices BSE Sensex and NSE Nifty plunged over 1.50 per cent in the previous trading session.

According to ICICIdirect, the rupee weakened sharply on Thursday amid concerns on steep oil supply cuts by OPEC and other members. However, the meeting ended without a supply deal as Russia has not yet committed.

The US dollar declined as risk sentiment improved amid ebbing risks of higher prices as of now. Investors will await US November employment details as well as Fed monetary policy meeting. “Any dovish assessment shall see the dollar declining swiftly,” ICICIdirect said.

Accoriding to Motial Oswal Financial Services, USDINR pair is expected to quote in the range of 70.30 and 71.20 on Friday.

“Dollar came under pressure following renewed speculation of an imminent pause in the Federal Reserve’s tightening cycle. Market participants will now be keeping an eye on the non-farm payrolls number and expectation is that the US economy could see job addition of 198,000 jobs in November compared to 250,000 jobs in the previous month. Lower-than-expected job addition could continue to keep the greenback under pressure,” Motial Oswal said in a report.

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