On Monday, USDINR opened 12 pips firm @ 71.02/03 against Friday closed at 71.14/15.
Early morning firmness directly correlated with weakness in dollar index on hope of trade negotiation.
Matter of concern is Brent as well as Crude oil price mounting on fading of global slowdown threat.
We expect any firmness in rupee will be opportunity for shorter term liability covering.
Relaxation in GST slab seems more burden on government treasury.
INTRADAY RANGE - 70.85 ( 70.96 - 71.16 ) 71.33
On Friday, Foreign Exchange market, the local unit opened almost flat at 71.23 and touched a high of 71.11 to the dollar in day trade.
The rupee finally settled at 71.14, showing a gain of 10 pips over the last close against greenback.
On Thursday, The rupee had skidded by 13 pips to close at 71.24 against the US dollar.
On weekly basis, the rupee gained 9 pips or 0.13 per cent, its second week of gains in a row.
The U.S. president he would plan a summit meeting with Chinese President Xi Jinping at his Mar-a-Lago estate in Florida to conclude an agreement, assuming the trade talks make additional progress.
The offshore yuan strengthened 0.3 percent to 6.6806 yuan against the dollar, its highest level since mid-July, also on the news he will not raise tariffs on $200 billion of Chinese imports to 25% from 10%.
The risk-sensitive Australian dollar rose and the yen sagged in early Asian trade on Monday after U.S. President Donald Trump said he will delay increasing tariffs on Chinese goods on March 1, citing "substantial progress" in trade talks.
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