Rupee Appreciates by 3 Paise Against US Dollar Amid Broad-Based Weakness
The Indian rupee opened on a flat note and appreciated by 3 paise to 95.34 against the US dollar in early trade on Tuesday, August 4.
This gain was due to support from the broad-based weakness in the US Dollar Index amid improving global risk sentiment, which negated demand for dollars from importers.
Forex traders stated that lower oil prices and a softer US dollar outweighed importer demand for dollars. Market participants are now looking ahead to the upcoming RBI MPC decision and key US economic data later this week for further direction.
Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, said: 'The rupee opened on a flat note and may remain in the range of 95 to 95.50 as oil and dollar index also remain very stable while the market awaits for the RBI Monetary policy decision on Wednesday.'