Rupee opens 20 paise down at 73.07 against dollar

The rupee on Wednesday opened 20 paise down at 73.07 against the US dollar following strengthening dollar index.

Dollar rebounded in yesterday’s session after the US manufacturing activity accelerated to a nearly two-year high in August.

“Momentum in today’s session is likely to be curbed as the dollar rose marginally against its major crosses. For the day, we expect USDINR (Spot) to quote in the range of 72.70 and 73.20,” brokerage Motilal Oswal Financial Services said.


Earlier, the local currency gained 73 paise to breach the 73-mark against the US dollar on Tuesday, supported by liquidity-boosting measures announced by the RBI.

Of late, FII flows have been one of the major influencers for the appreciation in the rupee. They poured more than Rs 45,000 crore in the domestic equity market last month, one of the highest monthly inflows figures in the recent past.

Today, from the US, market participants will be keeping an eye on the private payrolls number and better-than-expected data could extend gains for the greenback.

Euro came under pressure in the late hours of yesterday’s session on expectation that the ECB will have to inject more stimulus to generate price growth which has undershot its target for seven years.