The rupee gained marginally and opened 9 paise higher at 70.43 against the US dollar on Tuesday amid weak global cues and foreign fund outflows. The rupee started at 70.43 at the interbank forex market, displaying gains of 9 paise over its last close.
The rupee on Monday fell sharply by 59 paise to end at nearly two-and-a-half-month-low of 70.51 against the US currency. Forex dealers said foreign fund outflows, rising crude prices and US-China trade-related matters weighed on the domestic currency.
Foreign institutional investors (FIIs) continued net sellers in the capital markets, pulling out Rs 1,056.01 crore on a net basis Monday, as per provisional data. Brent crude futures, the global oil benchmark, rose 0.34 per cent to USD 70.47 per barrel.
While, the benchmark BSE Sensex started on a cautious note at 37,035.44, down by 55.38 points; while the NSE Nifty was swapping at 11,132.20, lower by 16 points.
On the global front, US President Donald Trump remained fixed on his policy to impose a heavy import duty on Chinese products, which has developed in a quick retaliation from China and a massive downside in the American stock market fearing a US-China trade war. “There can be some retaliation, but it can’t be very, very substantial, by comparison,” Trump told journalists at the Oval Office of the White House, which was soon after China announced retaliatory tariffs on the import of American products.