Indian Rupee opens flat at 54.62/dollar.

The Indian rupee opened flat at 54.62 per dollar as against previous day's close.

The euro slipped slightly to 1.30 to the dollar. The dollar index was at 82.33 mark.

Jayesh Mehta, Bank of America said, "The drop in gold and crude prices will support the rupee with a positive bias towards 54/USD. Also, the correction in these commodities will help reduce the CAD and inflation. The range for the day is seen between 54.40-54.70/USD."

The rupee fell to a one-week low on Monday as tumbling commodity prices hit global risk currencies, but pared losses after lower-than-expected inflation data raised hopes the Reserve Bank of India would cut interest rates next month.

India's headline inflation slowed to the lowest rate in more than three years in March, hardening expectations the Reserve Bank of India would cut interest rates on May 3 for the third time this year.

The data came as Finance Minister P Chidambaram begins a series of road shows to woo investors in North America. India needs capital inflows to narrow a current account deficit that hit a record high in the October-December quarter.


Source : moneycontrol.com