The rupee on Monday opened 2 paise higher at 76.17 against the US dollar following gains in the domestic equity market and some weakness in the American currency.
Rupee quoted in a narrow range in the previous session as uncertainty on the Indo-China border kept the momentum low for the currency. The local currency on Friday settled 5 paise down at 76.19 against the greenback.
“This week, too, market participants will continue to monitor the situation on the Indo-China border and any escalation could keep the currency weighed down,” said Motilal Oswal Financial Services in a report.
RBI continues to build its reserves and latest data released by the central bank showed reserves rose by $5.94 billion to fresh record levels at $507.64 billion.
Brokerage Motilal Oswal expects the USDINR (Spot) to quote in the range of 76.05 and 76.50.
Broader gains in the dollar remained sustained for the whole week after data released from the US were marginally better-than-expectation but at the same time, fear of the second wave of coronavirus cases in the US attracted safe haven buying in the currency.
This week, from the US focus, will be on the final GDP and core PCE index number. Better than -than-expected economic data could extend gains for the greenback.
Source:- economictimes.indiatimes.com