Rupee opens 4 paise lower at 71.52 against US dollar

The rupee on Wednesday opened 4 paise lower at 71.52 against the US dollar amid rise in crude oil prices. The domestic unit on Tuesday spurted by 54 paise, its biggest single-day gain in more than five months, to close at a one-week high of 71.48 against the US dollar, boosted by positive sentiment over the fiscal situation.

The Reserve Bank's decision to transfer a record Rs 1.76 lakh crore dividend and surplus reserves to the government revived the rupee, forex traders said.

Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 923.94 crore on Tuesday, according to provisional exchange data.

That apart, market participants will keep an eye on Q1 GDP number. According to Ficci survey, economic growth is likely to be 6 per cent in the first quarter of the current fiscal year, which would accelerate to 6.5 in the second quarter. For the entire year, the growth was pegged at 6.9 per cent.

"Today, USD/INR pair is expected to quote in the range of 71.40 and 72.05," said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services (MOFSL).

On the global front, Asian stocks traded marginally higher as higher Wall Street futures provided some relief for investors after an overnight US selloff, though deeper worries about the global economy are likely to keep a lid on sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.03 per cent, Japan's Nikkei rose 0.04 per cent and Australia's shares rose 0.07 per cent, Reuters reported.

In the currency market, The dollar was little changed at 105.67 yen after falling 0.3 per cent on Tuesday. In commodities, oil prices gained over 1 per cent as drop in US inventories eased recession worries.