Rupee opens flat at 71.03 against dollar
“Today, USDINR pair is expected to quote in the range of 70.70 and 71.30.”
Earlier, the local currency snapped its five-day winning streak on Thursday to finish 11 paise lower at 71.02 against the greenback, weighed by unabated foreign fund outflows and a weak trend in domestic equity markets.
Most market participants remained cautious ahead of the important ECB policy statement that was released yesterday. In line with expectation the central bank held rates unchanged and will also continue its bond purchases at a pace of 20 billion euros per month. Despite weak growth across the euro zone, the ECB President Draghi insisted the benefits of loose money policy far outweighed the risks.
“Today, USDINR pair is expected to quote in the range of 70.70 and 71.30,” brokerage firm Motilal Oswal Financial Services said in a report.
Pound came under pressure after UK Prime Minister called for a general election on December 12 to break Britain’s Brexit impasse.
The UK Prime Minister seems to still hold out hope of securing a deal with Brussels, offering parliament until November 6 to ratify an agreement he settled with the EU last week. All eyes are now on not whether, but by how long, the EU decides to extend the Brexit process.