Indian rupee opened higher by more than 20 paise against the greenback on Tuesday, as dollar remained under pressure ahead of a crucial Federal Reserve meeting starting later in the day.
At 09:10 AM, the
rupee was trading at 71.25 a dollar, up 31 paise from its Monday’s close of 71.56. The home currency opened at 71.32 and touched a high and a low of 71.25 and 71.36 a dollar, respectively.
On Monday, the Indian rupee recovered by 34 paise to close at 71.56 against the US dollar as forex market sentiments were driven by the country’s narrowing trade deficit in November as also smart gains in domestic equities.
The local currency was firm today as the US dollar took a step back ahead of the Fed meet.
Market participants are now turning their attention away from immediate global trade issues to the Federal Reserve’s Dec. 18-19 meeting.
The Fed is widely expected to raise interest rates by 25 basis points, its fourth rate hike this year though greater focus will center on the policy outlook for 2019, over which there is more uncertainty, reported Reuters.
Meanwhile, oil prices edged down amid concerns oversupply. International Brent crude oil futures were at $58.95 per barrel at 0141 GMT, down 66 cents, or 1.11 percent, from their last close.
