The local currency on Friday advanced 32 paise to close at a nearly two-month high at 70.56 per dollar.
According to Motilal Oswal Financial Services, market participants will remain cautious ahead of the important RBI policy meeting scheduled this week. The expectation is that the central bank could consider cutting rates, but further dovish stance could keep gains capped for the currency.
“Today, USDINR pair is expected to quote in the range of 70.50 and 71.05,” the brokerage house said.
Data released this morning from China showed manufacturing activity expanded more-than-expected in September as compared to the previous month. Yuan strengthened marginally after a better-than-expected manufacturing number.
Dollar was weighed down in Friday’s session after reports that US Administration was mulling de-listing Chinese companies from US stock markets. But later during the weekend, US Treasury official said such ideas were not being contemplated “at this time”.
Download The Economic Times News App to get Daily Market Updates & Live Business News.