The rupee on Tuesday opened 5 paise higher at 71.23 against the dollarNSE -0.69 %, supported by some selling in the American currency by banks and exporters.
The local unit on Monday declined 9 paise to settle at 71.28.
“Major appreciation came in following rumors that the government may not consider farm loan waiver option. No confirmation as of now on the reports, but even a possibility has turned the tide in favour of the rupee. Today, USD-INR pair is expected to quote in the range of 70.70 and 71.50,” brokerage firm Motilal Oswal Financial Services said.
The dollar globally has been trading on a positive note of late as talks between the US and China start to take shape and on better-than-expected economic numbers from the US. But gains were limited as market participants remain cautious after the partial shutdown of the Federal government dragged on and financial market volatility stoked fears of a sharp deceleration in economic growth.
Existing home sales number is expected to be released in the US, but is less likely to have major impact on the greenback.
Source: economictimes.indiatimes.com