The rupee rises 8 paise to 71.58 against the US dollar in early trade
Mumbai, December 3 () The Indian rupee appreciated on Tuesday 8 percent at 71.58 against the US dollar, as investors hoped that the Reserve Bank would go to another rate cut to boost growth economic.
Forex traders said the national unit is operating in a narrow range before the RBI monetary policy decision on Thursday.
In the interbank exchange rate, the rupee opened at 71.66, then gained momentum and touched a maximum of 71.58 against the dollar, showing an increase of 8 paise in its last close.
The Indian rupee closed on Monday at 71.66 against the US dollar.
Bankers and experts believe that the Reserve Bank can reduce interest rates for the sixth time in a row on December 5 to support the growth that has continued to decline.
The RBI has reduced interest rates on each occasion that the monetary policy committee (MPC) has met since Shaktikanta Das took over as governor last December.
Traders said the rupee is trading in a narrow range as the market expects new clues about the possible trade agreement between the United States and China.
Meanwhile, Brent crude futures, the world benchmark for oil, rose 0.20% to USD 61.04 per barrel.
Foreign institutional investors remained net sellers in capital markets, as they sold shares worth Rs 1,731.33 million on Monday, according to provisional data.
The national stock exchanges opened on Tuesday with a cautious note with the Sensex benchmarks trading at 66.01 points below 40,736.16 and Nifty by 23.75 points at 12,024.45.
The dollar index, which measures the strength of the dollar against a basket of six currencies, rose 0.05 percent to 97.90. The yield on 10-year government bonds was 6.48 percent in the morning trade. DRR DRR DRR