Indian rupee opens flat at 61.59 per dollar.

Mumbai: The rupee opened flat at 61.59 per dollar on Tuesday. The dollar clung onto modest overnight gains but stayed near a nine-month trough as investors bet the Federal Reserve will set the course for its massive stimulus programme to be maintained into early next year.

Pramit Brahmbhatt, Alpari India said, "Rupee will trade weak following a hawkish macroeconomic report by RBI. The Central Bank is expected to raise interest rates by 25 bps today."

"Strong month-end dollar demand by importers and strong dollar in international markets will put further pressure on rupee. The range for the day is seen between 61.02-62.20/USD," he added.

Meanwhile, global equities were quiet ahead of the two day FOMC meet that begins on Tuesday.

US and European markets ended narrowly mixed on Monday, but Asian markets slipped in early trade on Tuesday morning with the Nikkei down a per cent.

In commodities, Nymex futures is edging towards USD 98 a barrel ahead of the Fed's meeting, but held within sight of a one-week high as a sharp drop in Libyan oil exports rekindled worries over supply.

From the precious metals space, gold remain unchanged near its five week highs as weak US economic data boosted views that the Fed would maintain its stimulus measures to support the economy.

Source : ibnlive.in.com