Indian rupee opens higher at 67.08 per dollar

The Indian rupee opened higher by 7 paise at 67.08 per dollar on Wednesday versus 67.15 yesterday.

In the last few sessions rupee is consolidating in a range of 66.90 and 67.35 as most market participants are cautious ahead of the important RBI policy statement that will be released later today. Expectation is that the central bank could hold rates but at the same time could change its stance from ‘Neutral’ to ‘Hawkish’, said motilal Oswal.

After the recent rally in global crude oil prices inflation outlook could be revised higher and that could weigh on the rupee. Apart from inflation, one of the reasons that does not justify any monetary tightening is the deterioration in the global economic recovery. Overall, volatility in the USDINR pair could be low in the first half of the session but could increase post release of the RBI policy statement.

The rupee is expected to quote in the range of 66.90 and 67.35, it added.