The rupee stepped back from 2-week highs hit in the previous session and opened lower against the US dollar on Tuesday, hurt by a stronger greenback.
At 09:06 AM, the rupee was trading at 72.02 a dollar, down 60 paise from its Friday’s close of 71.42. The home currency opened at 71.97 and touched a high and a low of 71.97 and 72.03 a dollar, respectively.
Indian financial and money markets were shut on Monday on account of a public holiday.
In the currency market, the dollar gained after Bloomberg News reported that Chinese and the US officials are struggling to agree a schedule for a round of trade negotiations that were expected this month.
The dollar index was at its highest in more than two years against a basket of currencies, while global stocks were hit by US-China trade frictions.
Sterling hovered near a more than two-year low amid growing investor worries about a “no-deal Brexit”. The pound is likely to remain under pressure ahead of a vote in Britain’s parliament about Brexit later on Tuesday.
In the commodity markets, oil prices weakened after new import tariffs imposed by the United States and China came into force. The activity was thin because of the US Labor Day public holiday.
International Brent crude futures settled down 59 cents to $58.66 a barrel, after trading as low as $58.10 during the day.
In debt markets, the yields on the 10-year government bonds were down 0.90 percent at 6.50 percent from the previous close of 6.56 percent. Bond yields and prices move in opposite directions.