The Indian rupee opened higher by 7 paise at 68.28/$ against the previous close of 68.34/$.
Asian markets were trading in the red on opening bell as despite overnight gains in the Dow Jones the sharp volatility in the US $ combined with crude trading over $50 weakened sentiment.
US indices closed mixed with Dow hitting a new high and Nasdaq falling due to deep cuts in semiconductor and biotechnology shares. Uncertainty in EMs is likely to continue in the near term given the possible Fed rate hike anticipated this month. The Indian market's focus will be on the RBI move next week where a rate cut is on the anvil given the slowdown in the economy. The Italian referendum on Sunday will keep global markets anxious.
The Indian equity market was one of the worst performing ones among the emerging markets in November shedding 4.6pc in a month, which saw a sudden demonetisation move of high value currency.
The first impact numbers were reflected in Nikkei India Manufacturing Purchasing Managers' Index (PMI), which dropped to 52.3 in Nov from a 22-month high of 54.4 in Oct. Shortages of currency notes hampered growth of new work, buying activity and production. Auto numbers were a mixed bag with Maruti Suzuki and Toyota clocking double digit growth, while Mahindra’s sales saw a drop.
Gold prices also hit near 6 month lows as asset class rotation after the Trump victory has seen the highest volatiltiy in the last decade.
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