Rupee opens 12 paise higher at 69.41 against US dollar

The rupee on Monday opened 12 paise higher at 69.41 against the US dollar. The domestic currency on Friday rallied 49 paise to close at 69.53 following a decisive mandate for Narendra Modi-led BJP (Bharatiya Janata Party) in the general elections.

On weekly basis, the Indian currency gained 70 paise helped by a host of domestic and global factors like stable political outlook with NDA government's return, sustained fund inflows, lower crude oil prices and strengthening Asian currencies.

Foreign investors have pulled out a net amount of Rs 4,375 crore from the Indian capital markets in May so far, driven by global and domestic factors. FPIs invested a net Rs 1,352.20 crore in equities on May 23, when the ruling BJP scored a thumping victory in the general elections.

"Today, USD/INR pair is expected to quote in the range of 69.20 and 69.90," says Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL).

On the global front, Asian stocks edged up early on Monday, and the euro was confined to a narrow range after the weekend’s European Parliament elections highlighted the deepening political fragmentation of the 28-country bloc, Reuters reported.

In currency market, the pound was 0.1 per cent higher at $1.2727. Sterling had bounced back from a near five-month trough of $1.2605 after British Prime Minister Theresa May said she would quit early next month. The dollar index against a basket of six major currencies inched down 0.05 per cent to 97.563.

In commodities, US crude futures crawled up 0.38 per cent to $58.85 per barrel, trimming some of the deep losses suffered last week when trade tensions clouded the global demand outlook for the commodity.