Rupee opens higher at 90.54 on softer dollar

The local currency is currently trading at 90.4600, as compared to 90.4400 in the previous session

The rupee opened 3 paisa higher on February 10 after the US dollar weakened overnight due to softer economic data but is unlikely to will cross the psychological vital 90 mark any time soon.

The currency was trading at 90.54 to the dollar after ending the previous session at 90.57. The rupee appreciated in the previous session but failed to go beyond Rs 90.50, as importers bought dollars to hedge positions.

“Inflows allowed the rupee to gain yesterday as it closed higher from Monday’s close. Overall the movement was on both sides with upticks on the dollar getting sold and downticks getting bought keeping rupee in a range of 90.45 to 90.80,” Finrex Treasury Advisors said on February 11.

The dollar softened after retail sales data from the world’s largest economy pointed towards a cooling economy, giving room for the US Federal Reserve to cut rates.

Traders will now be tracking the consumer price index data and employment data, which will be released later this week, to take any fresh positions on the rupee.