The rupee opened 17 paise down on January 28 following a surge in the dollar index.
The local currency opened at 86.5050 against the dollar but slipped to 86.5575. It ended at 86.3387 against the dollar in the previous session.
The dollar index, which measure American currency's value against six major global peers, rose to 107.866 in the early trade, against 107.341 in the previous session.
“The dollar index is likely to trade between 107.00 and 108.00, with 108.00 acting as a strong resistance. A breach below the 107.00 level could open up a path to 105.50–106.00 levels,” Amit Pabari, managing director at CR Forex Advisors, said.
On January 27, the Reserve Bank of India (RBI) announced some liquidity measures, which includes conduct of USD/INR Buy/Sell Swap auction of $5 billion for a tenor of six months. These are expected to infuse Rs 1.5 lakh crore liquidity to the banking system which has been grappling with a shortfall.
The central bank said it will continue to monitor conditions and take additional steps to maintain orderly liquidity.
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