Rupee gains 37 paise in opening trade

The Indian rupee opened higher by 37 paise at 59.39 per dollar versus 59.76 yesterday.

Rajeev Malik, CLSA said, "India will likely suffer more downgrades to GDP growth forecast if the RBI goes ahead with a sustained and aggressive liquidity squeeze, but it will still eventually have to live with a weaker rupee. A CRR hike on July 30 cannot be ruled out. Tactically, the RBI is more likely to prefer sucking out liquidity via bond issuance to ensure that interbank rates remain well above the repo rate."

The euro dollar holds above the 1.32 mark. The dollar index was trading around 82.

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