The rupee opened 8 paise up against the dollar on March 13 on easing inflation and crude prices. The local currency opened at 87.13 against the dollar after ending the previous session at 87.21.
The dollar index, which measures American currency's value against six major global peers, was at 103.553 in the early trade. It closed at 103.612 the previous day.
India's retail inflation eased to a seven-month low of 3.61 percent in February, falling below the RBI’s 4 percent target for the first time in almost two years, cementing hopes of another rate in the April meeting of the Reserve Bank of India.
The drop in retail prices in February marks only the third time this fiscal year that inflation has dipped below 4 percent. The number was below the MC poll median of 19 economists that pegged inflation at 3.8 percent.
A sharp 15.50 percent decline in crude prices — from $81.73 per barrel to $69 a barrel — has eased India’s import bill, providing some relief to the rupee, Amit Pabari, managing director at CR Forex Advisors said.
"The USD/INR pair is expected to trade within a range of 86.80-87.40 in the near to medium term," Pabari added.
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