The rupee opened 16 paise up on April 16 after retail inflation dropped to over a five-year low in March and easing of dollar, as the market goes into wait-and-watch mode on the US tariff action.
The rupee opened at 85.61 against the dollar. It had ended the previous session at 85.77.
Inflation eased to a 67-month low of 3.34 percent in March, as food price declined further, data released on April 11 showed.
March marks the second consecutive month that retail inflation remained below the Reserve Bank of India’s target of 4 percent. The reading comes a week after the central bank delivered its second consecutive rate cut of 25 basis points.
The dollar index also eased as market stabilised, waiting for the outcome of US tariff talks with its various trading partners.
The dollar index, which measures American currency's value against six major global peers, fell to 99.802 in the early trade. It traded at 100.215 levels in the past two sessions.
The rupee is likely to trade in the 85.60-85.95 range against the during the day, Abhishek Goenka Founder & CEO, India Forex Asset Management-IFA Global, said.
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