The rupee on Monday opened 3 paise down at 69.61 against the US dollar due to rising crude oil prices amid intensifying geopolitical tensions in the Gulf region.
The United States was due to tightening sanctions on Iran as the two countries traded barbs in a tense standoff sparked by Washington's withdrawal from a nuclear deal.
Both nations say they want to avoid going to war, but tensions have spiralled as a series of incidents, including attacks on tankers and the shooting down of a US drone by Iran in the Gulf, raised fears of an unintended slide towards conflict.
The local currency on Friday slid 14 paise to close at 69.58 against the US dollar.
On the domestic front, RBI minutes were released last week wherein members broadly suggested that inflation is expected to stay within the MPC’s mandated medium-term target of 4 per cent despite the upside risks.
Minutes also mentioned that concerns of an uptick in inflation from a sustained rise in food prices, uncertainties related to the monsoon and volatility in international crude oil prices remain and will be monitored. This week, on the domestic front, no major economic data is expected to release but the focus will be on the G20 meeting that is scheduled to release this week.
“Today, USDINR pair is expected to quote in the range of 69.20 and 69.90,” brokerage firm Motilal Oswal Financial Services said in a report.
Source: economictimes.indiatimes.com