The rupee opened little changed against the greenback on Wednesday, a day after the domestic currency closed at more than a two-month high propelled by foreign capital inflows.
At 09:10 AM, the rupee was trading at 69.68 a dollar, up 3 paise from its Tuesday’s close of 69.71. The home currency opened at 69.70 and touched a high and a low of 69.63 and 69.74 a dollar, respectively.
According to market experts, the rupee gained for a second session on Tuesday, on the back of strong overseas inflows amid growing support for the Modi government in the upcoming general elections.
Lok Sabha elections will begin on April 11 and will be held over seven phases followed by counting of votes on May 23, the Election Commission announced on Sunday.
Foreign investors continued to pour in capital into Indian markets amid growing risk appetite for riskier assets.
According to provisional exchange data, FPIs put in Rs 2,477 crore on a net basis in capital markets Tuesday. They had invested a net Rs 3,810.60 crore on Monday.
Globally, the dollar dropped against rival currencies, after a soft US inflation report reinforced expectations the Federal Reserve will stay patient on rates.
Annual consumer price inflation for February slowed to its lowest since September 2016 at 1.5 percent.
The dollar drifted off to 111.18 versus the Japanese Yen.
In commodity markets, oil prices edged up on tightening global supply after a Saudi official said the kingdom plans to cut oil exports in April, reported Reuters.
International Brent crude oil futures were at $66.93 a barrel at 0039 GMT, up 26 cents, or 0.4 percent, from their last close. Brent touched $67.39 a barrel on Monday, its highest since Feb. 25.
In debt markets, the yields on the 10-year government bonds were unchanged at 7.36 percent. Bond yields and prices move in opposite directions.
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