The Indian rupee opened lower by 7 paise at 69.49 per dollar on Tuesday versus 69.42 yesterday.
On Monday the rupee declined by 25 paise to close at 69.42 against the US dollar as forex traders turned cautious in a holiday-truncated week.
Forex traders said easing crude oil prices in the overseas market, sustained foreign fund inflows and heavy buying in the domestic equity market restricted the fall in the local unit.
Forex and equity markets will remain shut on Wednesday on account of "Mahavir Jayanti" while most of the major financial markets are closed on Friday for the start of the Easter holidays.
Rupee consolidated in a narrow range but came under pressure in the latter half of the session after IMD released first long-range forecast for the South-west monsoon rains yesterday. The rainfall in the four-month season from June to September is likely to be 96% of the 50-year average. According to the weather department, there is 39% probability of normal rainfall, 32% probability of below normal and 17% probability of deficient rains, said Motilal Oswal.
On the domestic front, India’s trade deficit narrowed in March to USD 10.89billion compared to USD 9.6billion in the previous month. Today, USD-INR pair is expected to quote in the range of 69.05 and 69.80, it added.
Source: moneycontrol.com