USDINR opened with 0.0150 pips mild gain at 70.47/48 against Friday closed at 70.4950/5050 levels. On the domestic front, market participants will be keeping an eye on the inflation number that will be released today. Expectation is that price rise could be slower in December compared to the previous month thereby keeping the rupee supported on lower levels. Weaker Chinese Trade Data hurt Oil Price that leads to rupee revive against dollar.
INTRADAY RANGE - 70.04 ( 70.30 - 70.65)70.83
On Friday USDINR weakened by 0.0950 pips to close at 70.4950 on rise in demand for the greenback from exporters coupled with unabated rise in global crude oil prices. Besides, foreign fund outflows and stronger dollar against its key rival currencies impacted the rupee trading pattern. The country's foreign exchange reserves jumped by $2.68 billion -- one of the largest increases in recent months -- to touch $396.084 billion in the week to January 4. The overall reserves had increased by $116.4 million to $393.404 billion in the previous reporting week.
The dollar rose against most of its peers on Monday, although heightened investor expectations that the Federal Reserve will not raise rates this year are most likely to cap the greenback's gains. The dollar fell 1.5 percent versus the offshore yuan last week, its steepest weekly decline since January 2017 as investors' fears of a sharp slowdown in the world's second largest economy somewhat abated. After a stellar 2018, in which the greenback gained 4.3 percent due to the U.S. central bank hiking rates four times, investors now expect the Fed to halt its monetary tightening policy.
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