The Indian rupee declined in the opening tarde on Monday. It has opened lower by 11 paise at 68.12 per dollar versus 68.01 Friday.
According to Motilal Oswal, rupee, on Friday, consolidated in a narrow range as most market participants were cautious ahead of the important floor test in state elections of Karnataka. Despite the impact of state elections is expected to be short lived, rise in global crude oil prices will continue to drive currency in the short term. Higher crude oil prices and political risk premium could keep the rupee under pressure.
Consistent fund outflows by FIIs in equity and debt segment will continue to weigh on the rupee. Volatility for the currency has been restricted in the past few sessions on backof suspected RBI intervention. Latest RBI data showed India’s FX reserves for the week ended May 11, fell by USD 1.2 billion to USD 417.7billion.
Today, rupee is expected to open lower against the US dollar and, for the day, expected to quote in the range of 67.80 and 68.35, it added.
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