The Indian rupee opened with 24 pips gain @ 69.96/97 against greenback on Friday. Volatility in rupee continued to remain high, In the last few sessions crude has been volatile by concerns that slowing global economic growth could dent demand but has drawn support from signs that Saudi Arabia is cutting crude output.
SUGGESTION FOR INTRADAY
EXPORTER - WAIT FOR UPSIDE
IMPORTER - EVERY DIP BUY
INTRADAY RANGE - 69.70 (69.86 - 70.22) 69.48
On Thursday rupee weakened for the second straight session, slipping by 2 pips to 70.20 against the US dollar on robust foreign fund outflows amid rising trade deficit worries. Rising domestic fiscal deficit worries, firming crude prices and sustained foreign fund outflows weighed on the local unit. Foreign funds pulled out Rs 972.81 crore from the capital markets on a net basis Thursday, while domestic institutional investors bought equities to the tune of Rs 34.52 crore, provisional data showed.
The safe-haven yen strengthened marginally versus the dollar on Friday as broader market sentiment remained weak on rising concerns over a sharp slowdown in global growth. Weaker-than-expected US factory activity and fears of a slowdown in China from a bruising trade war have heightened investor expectations the Federal Reserve will not raise rates in 2019, and possibly even cut them in 2020. Global equities have had a weak start to the new year and US bond yields have fallen sharply on rising bets economic activity could brake sharply across the world this year.
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