The USD-INR pair is expected to quote in the range of 67.10 and 67.60, according to Motilal Oswal report.
The Indian rupee opened marginally higher at 67.25 per dollar on Monday versus 67.33 Friday.
According to Motilal Oswal, rupee consolidated in a range of 67.10 and 67.50 (Spot) for the fourth consecutive sessions despite gains in global crude oil prices and fund outflows by FIIs in equity and debt segment. In this month, fund outflows by FIIs now stand at USD 1.9 billion including both equity and debt segment. Since the start of April, fund outflows now stands at USD 4.2 billion suggesting that FIIs have been consistently pulling out funds out of India.
On Friday, India’s FX reserves for the week ended May,4 stood at USD 418.94 billion lower by USD 1.42 billion suggesting that the central bank has been intervening to curb the volatility for the rupee.
India’s IIP for March grew 4.4% compared to growth of 7% in the previous month casting doubts on strength of upturn in the Indian economy.
For the day, market participants will be keeping an eye on inflation; expectation is that price rise could be seen at 4.42% compared to rise of 4.28% in the previous month. The USD-INR pair is expected to quote in the range of 67.10 and 67.60, it added.