Today, USD-INR pair is expected to quote in the range of 73.60 and 74.20, says Motilal Oswal.
The Indian rupee crossed 74 mark for the first time after Reserve Bank of India (RBI) kept the repo rate unchanged at 6.50 percent.
Rupee slipped to a record low 74.10 per dollar, an all-time low on Friday. It opened marginally lower in the early trade.
MPC said that its decision is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for CPI inflation of 4 percent.
Rupee continues to remain under pressure and sell-off in equity markets, strength in the dollar and surge in global crude oil prices contribute to weakness in the currency. On the domestic front, market participants will be keeping an eye on RBI policy statement and expectation is that the central bank could raise rates by 25bps, said Motilal Oswal.
Surge in global crude oil prices and weakness in the rupee could push the officials to raise rates, but importantly focus will be on whether central bank raises its inflation forecast for the latter half of the year.
At the same time, market participants will also be looking forward to taking cues on how the central bank looks to tackle the liquidity issue. Today, USD-INR pair is expected to quote in the range of 73.60 and 74.20, it added.