Rupee opens 4 paise higher at 68.90 against dollar

The rupee on Tuesday opened 4 paise higher at 68.90 against the US dollar due to some selling in American currency by banks and exporters.

Rupee settled almost flat against the greenback on Monday ahead of the important US Q3 final GDP number that will be released during this week.

Market participants were also cautious ahead of the outcome of RBI's first-ever rupee-dollar swap auction. The rupee-dollar swap auction announced by the RBI earlier in March will infuse Rs 35,000 crore into the system.


The auction of $5 billion for tenure of three years will be conducted today. “Today, USDINR pair is expected to quote in the range of 68.70 and 69.20,” brokerage firm Motilal Oswal Financial Services said.

Dollar consolidated in a narrow range against its major crosses. The dollar volatility could increase in the latter half of the week following release of important economic numbers.

This week, from the US, consumer confidence, Q3 final GDP and Core PCE index all of them will be keenly watched. A better-than-expected number could extend gains for the greenback, according to Motilal Oswal.