Rupee gains 24 paise against US dollar in early trade

The rupee on Tuesday opened 24 paise higher at 70.90 against the US dollar amid rise in Asian equities. The domestic currency on Friday closed almost flat at 71.14 per US dollar amid hardening crude oil prices and lacklustre global cues. Persistent foreign fund inflows propped up the local unit though the gains were capped by crude oil hitting the $60 per barrel mark, forex brokers said.

Forex market was closed on Monday on account of assembly elections in Maharashtra.

Foreign investors bought equities worth Rs 36 crore on Friday, exchange data showed. They have infused a net sum of Rs 5,072 crore into the Indian capital markets in October so far amid the government's efforts to revive domestic demand. As per the latest depositories data, foreign investors put in a net sum of Rs 4,970 crore in equities and a net Rs 102 crore in the debt market during October 1-18, taking the cumulative net investment to Rs 5,072 crore.

"On the domestic front, no major economic data is expected to be released but more fund flows by the FIIs is likely to keep the rupee supported. Today, USD/INR pair is expected to quote in the range of 70.70 and 71.30," said Gaurang Somaiya, Research Analyst (Currency) at Motilal OSwal Financial Services (MOFSL).

On the global front, Asian share markets made guarded gains on Tuesday amid cheery chatter about the chance of a Sino-US trade deal, while investors were sanguine yet another vote on Brexit would still avert a hard exit for the UK. MSCI’s broadest index of Asia-Pacific shares outside Japan added a modest 0.3 per cent. Futures for Japan's Nikkei were trading at 22,760, compared to Monday's index close at 22,548. South Korean stocks rose 0.9 per cent and Shanghai blue chips were flat, Reuters reported.

In commodities, oil prices were little moved as the market fretted about the health of the global economy and the future for energy demand.