The rupee on Friday opened 10 paise down at 71.37 against the US dollar following demand for American currency by banks and importers.

Meanwhile, the benchmark 10-year bond yield eased to 6.58 per cent against 6.62 per cent in the previous trading session.

The dollar held onto gains after a surge in US retail sales eased concerns about the world’s top economy, but traders cautioned against reading too much into one piece of data given the growing risks of the outlook.

“Today, USDINR pair is expected to quote in the range of 71.10 and 71.80,” brokerage firm Motilal Oswal Financial Services said in a report.

The local currency on Wednesday advanced 13 paise to close at 71.27 against the US dollar amid easing oil prices and gains in the domestic equity market.

On the domestic front, data showed India’s trade deficit was at $13.43 billion as compared to $18.63 billion in the same period last year. Gold imports declined 42.2 per cent to $1.71 billion in July.

Oil imports fell 22 per cent to $9.6 billion, while non-oil slipped by 6 per cent to $30.16 billion.

“Weakness in emerging market currencies also accelerated as the interest rates on some long-dated government bonds have fallen below the level for short-term debt. The inversion rattled investors already worried that a US-China trade war might trigger a slowdown in global growth,” Motilal Oswal Financial Services said.

Source