The Indian rupee gained in the early trade on Tuesday. It has opened higher by 10 paise at 66.79 per dollar versus previous close 66.89. Ashutosh Raina of HDFC Bank said, “The USD retreated from the recent highs it hit against most of its peers, with some hawkish comments form Fed speakers increasing the probability of a December rate hike.
The USD-INR pair continues to trade in the 66.50-67/dollar range with some depreciating bias, as some FII outflows continue to pressurise the pair,” he added.
The US dollar retreated from seven-month highs as some investors took profits from the recent dollar rally and on speculation that the Federal Reserve will maintain a go-slow pace of raising interest rates even if the central bank tightens policy later this year.