Trading range for the day will be 66-66.50/dollar, says Pramit Brahmbhatt of Veracity.
Jan Lambregts, global head of financial markets research at Rabobank believes the recent quantitative easing by various central banks will lead to a flood of liquidity into the market which will eventually find its way to equities and will prove beneficial for emerging markets including India.
The decision to leave rates on hold was expected by all 60 analysts polled by Reuters after the ECB cut its deposit rate deeper into negative territory last month as inflation prospects soured further.
Just over ten hours of overnight negotiations between Athens and its lenders - the European Commission, the European Central Bank, European Stability Mechanism and the International Monetary Fund - broke off shortly before 0400 GMT. They were scheduled to resume later Monday.
"2016 will be a no less challenging year for the ECB. We face uncertainty about the outlook for the global economy. We face continued disinflationary forces. And we face questions about the direction of Europe and its resilience to new shocks," Draghi wrote in the report.
Despite the past success, the global economy remains sharply divided into two distinct zones. The developed economies of Europe and Japan are struggling to come out of economic stagnation.
The rupee's appreciation reflects a broad move into high yield emerging markets by investors, as central banks for major economies - notably the Bank of Japan and European Central Bank - have adopted a more dovish stance.
Though the impact of the blasts will be short lived and there won't be any substantial impact if consumer sentiment is not affected too much by it, says Bruno Verstraete of Lakefield Partners
European leaders will discuss further integration of the economies and policy-making of the 19 countries sharing the euro at a summit in June.
If this pace of net foreign buying is maintained for the rest of the month, Sakthi Siva of Credit Suisse is potentially looking at a USD 12-13 billion month. According to her, biggest recipients are Taiwan, Korea, India and Thailand.
After a two-day monetary policy meeting that began on Monday, the Bank of Japan (BOJ) maintained its commitment to raise the monetary base by 80 trillion yen annually and left the rate it charges commercial banks on certain reserves at 0.1 percent
Marc Faber said central bank policies are essentially monetizing debt, particularly in Japan, where he claims the Bank of Japan (BOJ) is buying all the government bonds the treasury is issuing.
Markets last week ended flat with Nifty managing to hold onto the 7,500 mark while the Sensex gained over 90 points to inch closer to 25,000 mark.
Subir Gokarn, Executive Director of IMF says while monetary policy give boost to other structural reforms, it is "naive to expect monetary policy can substitute other growth drivers."
In an interview with CNBC-TV18, Michael Every of Rabobank said that the markets did not like Draghi‘s comments and is starting to lose confidence in Central Banks.
The Indian rupee has opened lower by 9 paise at 67.16 a dollar compared to 67.07 a dollar in previous session.
Overnight, Wall Street closed flight while European stocks gave up early gains to trade lower after markets were left unenthused by the ECB announcement.
Stocks jumped early in the day after the ECB pushed its deposit rate deeper into negative territory and increased its asset-buying program to 80 billion euros a month from 60 billion in an effort to boost growth in the region.
The ECB slashed already record-low interest rates, prepared to pump massive new sums into the banking system and, for the first time, said it would start buying corporate bonds.
The ECB cuts its deposit rate deeper into negative territory, charging banks more for parking their cash, and increased monthly asset buys to 80 billion euros from 60 billion euros, exceeding expectations for an increase to 70 billion.
Among the arsenal of measures ECB President Mario Draghi has at his disposal are pushing the deposit rate further negative territory, an expansion of the bank's trillion-euro bond-buying program which could include a longer list of assets available for purchase, and a new or revised low-interest, long-term loan program.
We expect the USD-INR to trade in a range of 66.95-67.25/dollar today, says Mohan Shenoi of Kotak Mahindra Bank.
The euro zone's central bank is widely expected to cut its deposit rate deeper into negative territory and adjust its 1.5 trillion euro asset-buying scheme, hoping to boost prices after inflation dipped back into negative territory last month.
MSCI's broadest index of Asia-Pacific shares outside Japan nudged up 0.1 percent. Japan's Nikkei climbed 1 percent and Australian shares added 0.2 percent. South Korea's KOSPI rose 0.3 percent.
Speaking to CNBC-TV18, Luk says there are expectations of European Central Bank (ECB) and Bank of Japan to ease monetary policy further, which will help in easing liquidity.