The rupee traded nearly 8 paise higher at 73.78 against the US dollar in Wednesday’s early trade, tracking some selling in American currency by banks and exporters.
The local unit opened the day at 73.82 per dollar against its previous close of 73.86 against the greenback.
On Tuesday, the rupee consolidated in a narrow range for the third successive session and volatility remained low after the RBI postponed its policy meeting.
This week, on the domestic front, market participants will be keeping an eye on the fiscal deficit number and widening deficit could keep rupee gains in check.
In the last couple of sessions, volatility for the rupee has dropped as market participants are also awaiting for important cues on the global front including the US presidential debate which was scheduled this morning. The employment numbers will also be released later this week.
In the next couple of sessions, brokerage Motilal Oswal Financial Services expects USDINR (Spot) to quote in the range of 73.40 and 74.20.
The pound was weighed down against the US dollar in Tuesday’s session after Bank of England Governor warned the economic recovery may not be as strong going forward and did not entirely rule out using sub-zero interest rates if needed.
Today, market participants will be keeping an eye on a number of economic data that will be released from the UK and the US. Final GDP of both nations will be released Wednesday. There are hopes that the number could disappoint but could be in line with previous estimates.
Source:-economictimes.indiatimes.com