The Indian rupee opened little changed against the U.S. dollar on Tuesday as market participants turn cautious ahead of RBI's policy meeting later this week, according to forex traders.
The local currency opened 1 paise lower at Rs 83.38 against the U.S. dollar on Tuesday, compared with Monday's close of Rs 83.37.
-
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI -
'One Can Never Get Good News And Bad Share Price': S Naren, ICICI Pru Life AMC On NDTV Profit Ignite
The rupee traded at Rs 83.39 a dollar as of 9:11 a.m.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Market participants largely expects the RBI to continue the status quo, according to forex traders.
The dollar index rose to near two week high on Monday tracking losses in the euro, which exerted pressure on the Indian currency. The dollar index rose as much as 0.6% to 103.85 on Monday whereas, the European unit declined 0.7% to 1.0804 against the U.S. dollar.
"Despite the Nifty reaching new highs, the Indian rupee seems to be out of step, trading near its all-time low. This discrepancy can be attributed to factors such as a 5-year low liquidity deficit causing RBI's restrained intervention in selling dollars," said Amit Pabari, managing director, CR Forex Advisors.
"The robust demand for dollars from oil and gold importers, leading to a widening trade deficit, has also confined the rupee to a narrow range of Rs 83.00-83.40. However, the increasing probability of a Fed rate cut, anticipated strong inflows, a decline in inflation to 4.87%, and the resilient stance of the RBI suggests that the rupee may not depreciate beyond Rs 83.45."
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
