Rahul Gupta, Head of Currency, Emkay Global Financial Services:

Rupee has appreciated nearly 1% in two days. The hopes of US-China trade closing the Phase-one deal along with a potential Brexit deal, has kept all emerging market currencies including rupee, afloat. Also, the dismal US economic data, fall in dollar index and speculation over third rate cut by Fed added to the strength in rupee.

Going ahead, if Brexit deal is done by the Parliament, as mentioned by UK PM, then we can see further appreciation in rupee.

Having said that, developments over US-China trade deal will be closely watched. Both the nations are supposed to meet in South America next month. So unless and until a deal is not closed rupee will be on an edge. In between any positive development regarding the US-China trade deal will act in favour of rupee.

In USD/INR spot, 70.75 is a crucial support, if that breaks we can see a fall towards 70.50 level, meanwhile, 71.50 will act as a crucial resistance.