Rupee trading at day's low, nears 70 per dollar

The Indian rupee is inching towards 70 per dollar mark as it is trading higher by 32  paise at 70.08 per dollar against previous close 70.40.

Rupee gained in the early hour of the session after the dollar came under pressure against its major crosses and fall in global crude oil prices. On the domestic front, rupee was supported after the RBI decided to scale up the amount of liquidity infusion by Rs 10,000 crore to Rs 50,000 crore this month after a review of the evolving liquidity conditions. The RBI has already injected Rs 20,000 crore through two OMO purchase auctions. But, market participants remained cautious ahead of the important Fed policy statement that was released yesterday, said Motilal Oswal.

In the FOMC policy statement, the Fed decided to raise rates by 25bps but lowered its projections for next year’s interest rate increases. Today, USD-INR pair is expected to quote in the range of 70.30 and 71.20, it added.