Rupee opens 9 paise down at 70.97 against dollar
The local currency advanced 16 paise to 70.88 against the US dollar on Thursday.
In the last few sessions, the rupee is consolidating in a narrow range of 70.70 and 71.25(Spot) despite volatility in global markets. Post the announcement by the Finance Minister to cut tax rates, domestic equities have been rallying together with marginal gains in the rupee.
But ahead of the RBI policy meeting scheduled next week, market participants are a little cautious. The local currency advanced 16 paise to 70.88 against the US dollar on Thursday.
“On the domestic front, FIIs have been on sidelines post the announcement by the Finance Minister but further inflows could keep the rupee supported against the US dollar. Today, USDINR pair is expected to quote in the range of 70.70 and 71.30,” brokerage firm Motilal Oswal Financial Services said.
From the US, the final GDP number showed the economy grew at 2 per cent unchanged compared to the previous number. Today, market participants will be keeping an eye on the core PCE index number and the better-than-expected number could keep the dollar supported on lower levels.