Rupee slips 8 paise to 71.19 against dollar

NEW DELHI: The rupee was trading 8 paise down at 71.19 against the US dollar ahead of US FOMC policy meeting.

The local currency opened the day at 71.13 against the greenback as compared to the previous close of 71.11. It appreciated 7 paise in the previous trading session following easing crude oil prices and uptrend in other emerging market currencies.

The government will table the interim Budget on Friday.

“A populist Budget could weigh on the rupee in the near term in the backdrop of lower tax collections,” ICICIdirect said.

“Rupee continued to consolidate in a narrow range of 70.70 and 71.40 (Spot) and ahead of the important interim budget scheduled this week volatility could be confined to a range. Most market participants are expected to remain cautious ahead of the announcement of interim budget and that could keep the rupee in a broad range,” Motilal Oswal Financial Services said.

Global crude oil prices that have been quoting in a narrow range could witness up move after US government slapped sanctions on Venenzula’s state-owned oil firm PDVSA in a move aimed at severely curbing the OPEC member's crude exports to the United States.

Today, USDINR pair is expected to quote in the range of 70.70 and 71.50, Motilal Oswal said in a note.