Rupee opens 2 paise down at 74.70 against dollar

The rupee on Tuesday opened 2 paise down at 74.70 against the US dollar following some buying in American currency by banks and importers

The local currency on Monday also opened on a flat note but weakened in the latter half of the session despite gains in domestic equities and strength in the dollar against its major crosses.

In the last couple of sessions, the rupee has risen primarily on the back of Reliance Jio’s stake sale to Facebook-related dollar inflows that hit the market, according to Motilal Oswal Financial Services.


In the next few sessions, volatility could drop as no major economic data is expected to be released but the focus will be on industrial production number that will be released at the end of the week.

“For the day, we expect the USDINR (Spot) could quote in the range of 74.40 and 75.05,” Motilal Oswal Financial Services said.

Euro rose sharply against the US dollar in the first half of the session but was weighed in the latter half after services PMI number released from the US came in better-than-estimates.

Data showed services PMI rose to 57.1 in June compared to 45.4 in the previous month. From the Eurozone, the focus will be on the economic forecast report that will be released later this week and better-than-expected forecast report could extend gains for the currency.