Rupee opens 31 paise up at 70.53 against dollar

The rupee on Friday opened 31 paise higher at 70.53 against the greenback on renewed optimism that the US and China are close to reaching a deal in their costly trade war.

Rupee rose primarily on back of broad weakness in the dollar after reports suggest that US had reached a “deal in principle” with China to resolve the trade war that has rattled markets for nearly two years, according to Motilal Oswal Financial Services.

US President Donald Trump on Thursday said that the US was “very close” to nailing down a trade deal with China. Some sources believe that US negotiators have offered to cut existing tariff rates on $360 billion in Chinese goods by as much as 50 per cent.


“Today, USDINR pair is expected to quote in the range of 70.50 and 71.05,” Motilal Oswal said. The local currency pared its early gains and settled marginally up at 70.83 against the dollar on Thursday due to forex outflows amid growth concerns and uncertainty over the imposition of higher US tariffs on Chinese goods.

On the domestic front, data showed India’s inflation increased to 5.54 per cent last month, faster than the 4.62 per cent rate in October. October industrial output fell 3.8 per cent year on year, dropping for the third straight month, with all three major sectors-mining, manufacturing and electricity-shrinking.