The Indian rupee depreciated 4 paise to 74.44 against the US dollar in opening trade on Monday, as investors are awaiting cues from the US Fed's policy decision, due this week.
At the interbank foreign exchange, the rupee opened at 74.43 against the dollar, then fell further to 74.44, registering a fall of 4 paise over its previous close.
On Friday, the rupee had settled at 74.40 against the US dollar.
"As markets brace up for the FED meeting on July 28, all currencies are consolidating in their respective small ranges," said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
USD/INR is expected to keep a range of 74.30 to 74.70 for the day, Bhansali said, adding that "importers to buy cash near the lower end of the range while exporters to sell at the higher end".
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading down 0.05 per cent at 92.86.
"Investors will be closely eyed to assess the timing of the next bond taper, especially since labour market data is suggesting that economic recovery may have peaked," Reliance Securities said in a research note.
Moreover, other data like durable goods orders and US GDP data for the second quarter could also drive markets, the note added.
Global oil benchmark Brent crude futures fell 0.59 per cent to USD 73.66 per barrel.
On the domestic equity market front, BSE Sensex was trading 34.98 points or 0.07 per cent higher at 53,010.78, while the broader NSE Nifty advanced 14.50 points or 0.09 per cent to 15,870.55.
Foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 163.31 crore, as per exchange data.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU