ETAutoMUMBAI: The Indian rupee one paise higher against the US dollar, as market participants remained cautious ahead of the important industrial production (IIP) number that will be released later in the day.
The rupee opened 73.66, compared with previous close of 73.67.
The greenback was pinned near a two-and-a-half year low, with markets heavily short dollars as investors bet on better returns in other currencies as the pandemic recovery takes hold, Reuters reported.
On Thursday, the rupee consolidated in a narrow range for the third successive session, but the downside was limited as foreign institutional investors (FIIs) continue to pour funds in the equity segment.
“Apart from IIP, market participants will also be keeping an eye on the inflation number that will be released on Monday. Higher inflation number is likely to further trim expectations of aggressive rate cuts by the RBI,” Motilal Oswal analysts said in a note.
“For today, we expect the USDINR (Spot) to trade sideways and quote in the range of 73.40 and 74.20,” they added.
Meanwhile, Euro rebounded from its intraday lows after the ECB in its policy statement held rates unchanged but increased its bond buying purchase program by €500 billion to €1.85 trillion and extended the scheme by 9 months to March 2022.
Today, focus will be on the EU summit and more clarity on the Brexit front, Motilal Oswal analysts said adding that any increased uncertainty is likely to keep the pound weighed down against the US dollar.
The rupee opened 73.66, compared with previous close of 73.67.
The greenback was pinned near a two-and-a-half year low, with markets heavily short dollars as investors bet on better returns in other currencies as the pandemic recovery takes hold, Reuters reported.
On Thursday, the rupee consolidated in a narrow range for the third successive session, but the downside was limited as foreign institutional investors (FIIs) continue to pour funds in the equity segment.
“Apart from IIP, market participants will also be keeping an eye on the inflation number that will be released on Monday. Higher inflation number is likely to further trim expectations of aggressive rate cuts by the RBI,” Motilal Oswal analysts said in a note.
“For today, we expect the USDINR (Spot) to trade sideways and quote in the range of 73.40 and 74.20,” they added.
Meanwhile, Euro rebounded from its intraday lows after the ECB in its policy statement held rates unchanged but increased its bond buying purchase program by €500 billion to €1.85 trillion and extended the scheme by 9 months to March 2022.
Today, focus will be on the EU summit and more clarity on the Brexit front, Motilal Oswal analysts said adding that any increased uncertainty is likely to keep the pound weighed down against the US dollar.
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