NEW DELHI: The rupee on Wednesday opened 5 paise higher at 71.29 against the US dollarNSE -0.29 % on account of some selling in American currency by banks and exporters.
The local currency on Monday weakened by 11 paise to end 71.34 against the greenback after trade deficit for January widened compared to the previous month.
On the domestic front, rally in global crude oil prices has also weighed on the overall market sentiment.
“Today, USDINR pair is expected to quote in the range of 71.20 and 71.70,” Motilal Oswal Financial Services said.
The dollar fell against its major crosses after the US President proposed a 60-day extension beyond the March 1st deadline. If both countries fail to strike a deal, it will turn the market more risk-averse and trigger a sharp sell-off in risky assets, according to the broker's report.
Domestic forex market was closed on Tuesday on account of Chhatrapati Shivaji Jayanti.
Source: economictimes.indiatimes.com