USD/INR closed at 71.33 against its opening at 71.34. Dollar/rupee opened at three-week high Monday on buying by oil importers after Brent crude oil price surged above $62 a barrel following more than expected production cut by OPEC and non-OPEC countries.Also, overseas investors pulled out of local equity markets as globally sentiments dampened on renewed concern over US-China trade rift.
"Oil bids are supporting dollar demand. There is also outflows from stocks on trade rift concerns.Local stocks opened lower tracking Asian markets as weak global cues amid lingering US-China trade war fears weigh on investor sentiments.
Locally, the exit polls indicating Narendra Modi led government losing popularity among voters is seen driving uncertainty to the markets.That apart back home, investors will keep a tab on movement in rupee against US dollar ahead of state election results this week. Brent crude oil prices surged after the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including heavyweight Russia announced they would cut oil supply by 1.2 million bpd, with an 800,000 bpd reduction planned by OPEC-members and 400,000 bpd by countries not affiliated with the group.
Sensex and Nifty provisionally ends down 743.24, 217.75 points with 29 and 44 components in the red respectively.