Rupee opens 13 paise up at 73.40 against dollar

For the day, brokerage Motilal Oswal Financial Services expects USDINR (Spot) to quote in the range of 73.20 and 73.80.

The rupee on Monday opened 13 paise higher at 73.40 against the US dollar tracking gains in the domestic equity market.

The local currency on Friday consolidated in a narrow range ahead of the important industrial production number that was released later on Friday.

Data showed India’s industrial production contracted 10.4 per cent in July compared to a contraction of 15.7 per cent in the previous month.

On the domestic front, market participants will be keeping an eye on the ongoing uncertainty between India and China and increased turmoil could keep the rupee gains in check.

Apart from further updates on the ongoing tension between India and China, focus will be on inflation number.

There are expectations that price rise could have an impact on the next RBI policy meeting that is scheduled early next month.

For the day, brokerage Motilal Oswal Financial Services expects USDINR (Spot) to quote in the range of 73.20 and 73.80.

The US dollar rebounded against its major crosses following better-than-expected economic number from the US. But pound as such remained under pressure as uncertainty related to Brexit increased.

The government said parliament would debate the contentious Internal Market Bill on Monday.

This week, the focus will be on Bank of England’s policy statement and the dovish outlook is expected to keep the currency weighed down.