Rupee opens higher at 71.70 per dollar

Today, USD-INR pair is expected to quote in the range of 71.70 and 72.20, says Motilal Oswal.

The Indian rupee opened higher by 10 paise at 71.70 per dollar versus  previous close 71.80.

Rupee came under pressure ahead of the important RBI policy statement that will be released later this week. Expectation is that the central bank could consider cutting rates by 25bps but change in the stance could trigger volatility for the currency. This will be RBI governor’s first policy meeting and a dovish stance could put the currency under pressure, said Motilal Oswal.

In its December monetary policy review, the RBI had kept interest rates unchanged but held out a promise to cut them if the upside risks to the inflation do not materialise. Today, USD-INR pair is expected to quote in the range of 71.70 and 72.20, it added.

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