The Indian rupee opened higher by 27 paise at 72.71 per dollar on Wednesday versus previous close 72.98.

On Tuesday, the rupee closed at record low at 72.98 per dollar on the back of higher crude prices. It fell 47 paise in yesterday trading session.

Rupee fell more than 1 percent in last 2 days.

Analysts believe that a combination of surge in crude prices and trade war tensions weighed on the rupee.

US President Donald Trump Monday announced imposing new tariffs on an additional USD 200 billion worth of imports from China, escalating the trade war with the Asian giant.

Rupee rose marginally against the US dollar in the first half of the session but gains for the currency eroded in the latter half and closed at fresh record low levels. Rise in global crude oil prices has been one of the major triggers for the weakness in the rupee. Apart from rise in crude prices, China and the United States plunged deeper into a trade war after China added USD 60 billion of US products to its import tariff list in retaliation for President Donald Trump’s planned levies on USD 200 billion worth of Chinese goods, said Motilal Oswal.

There are rumors doing round that In light of the US action, China is reviewing plans to send a delegation to US for new talks. Today, USD-INR pair is expected to quote in the range of 72.25- 72.40 and 73.05, it added.

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