Rupee off day#39;s high; trades flat at 68.57 per dollar
The Indian rupee has erased all its gains and trading flat at 68.57 per dollar against previous close 68.53.
Rushabh Maru, Research Analyst – Currency and Commodity at Anand Rathi Shares and Stock Brokers said, “Rupee has extended its gains as India’s trade deficit has fallen to 17- month low. FIIs inflows are strong in the market. This is supporting the rupee.”
“68-68.20 in the spot may act as key support for the USD-INR in the short term,” he added.
On Monday, rupee rose to the highest level in seven months following sustained inflows by FIIs in equity and debt segment. Until now the FIIs in March have poured in funds worth USD 3.8 billion suggesting that they are bullish on the Indian growth story, said Motilal Oswal.
On the other hand, India’s trade deficit for February narrowed to a 17-month low of USD 9.6 billion in February as merchandise imports fell on the back of lower crude oil prices.
On the global front, global crude oil prices have started to rally and that could put pressure on the rupee. Today, USD-INR pair is expected to quote in the range of 68.40 and 69.05, it added.