Rupee erases gains but trades higher at 69.85 per dollar

The Indian rupee erased all its morning gains but trading marginally higher by 5 paise at 69.85 per dollar versus previous close 69.90.

On June 17 local currency fell 11 paise to end at 69.91 against US dollar on the back of sell-off in domestic equity market amid concerns over trade worries.

Rupee came under pressure but consolidated in narrow range ahead of the important major central bank policy statements that will be released later this week. Most Asian currencies are consolidating ahead of the important FOMC policy statement and that could provide a trigger to major crosses as well as to the rupee, said Motilal Oswal.

Expectation is that the central bank could remain dovish and any hints towards rate cut by the Fed could put the greenback under pressure.

Today, USDINR pair is expected to quote in the range of 69.40 and 70.05-70.20, it added.