Indian Rupee Rises On Crude Rally Pause; US GDP Data Eyed

The Indian rupee little changed at 70.13 pair now at 70.18 against 70.25 previous close.
Pair to tip in 70.00-70.30 range today.
The Indian rupee rose against the dollar in early trade, as the recent rally in crude oil prices paused that aided investor sentiments towards local assets. Pause in rise of crude oil prices has aided the rupee in opening trade. However, persistent demand for dollars from corporates and importers capped further gains. Markets will focus on U.S. growth data due later today, while traders will keep positions light ahead of the long weekend.

The dollar hovered near a two-year high against its peers on Friday, supported by strong U.S. capital goods orders and awaiting first-quarter GDP data which could further reinforce the greenback's bullish standing. Data on Thursday showed new orders for U.S.-made capital goods increased by the most in eight months in March. That follows other recent U.S. data that show strength in retail sales and exports which have eased concerns of the world's biggest economy sharply slowing.
We expect the GDP data to underline steady economic recovery. Differences in economic fundamentals is a key driver for currencies now that the Fed - and more recently the Swedish and Japanese central banks - have adopted a dovish stance.

Oil prices dipped on Friday on hopes that producer club OPEC will soon raise output to make up for a decline in exports from Iran following a tightening of sanctions on Tehran by the United States. Brent crude were at $74.16 per barrel.
Gold rose on Friday, on track for its first weekly gain in five weeks as investors focused on signs of economic weakness after dismal data from Germany and Asia, although a strong dollar ahead of U.S. GDP data kept a lid on gains.

Research