The rupee on Monday opened 12 paise higher at 71.66 against the American currency, extending its gains for the third session on the back of a positive trend in equity markets and weakness in the greenback against its major crosses.
The local currency on Friday appreciated 18 paise to settle at 71.78 against the US dollar. FIIs also continued to bring in funds in November and until now have poured funds worth $2.7 billion, including both equity and debt segment.
Last week, the rupee was weighed down by weaker-than-expected economic numbers. Industrial production as well as inflation numbers were a little disappointing, weighing on overall market sentiment.
Data released on Friday showed India’s trade deficit for October at $11 billion compared to $18 billion in the same period last year.
“Today, USDINR pair is expected to quote in the range of 71.40 and 72.20,” Motilal Oswal Financial Services said in a report.
Data showed retail sales in the US rose 0.3 per cent in November compared to contraction of 0.3 per cent in the previous month. This week, market participants will be keeping an eye on the Fed and ECB meeting minutes to gauge a view for the major crosses. For the day, volatility for the dollar could be confined to a narrow range as no major economic data is expected to be released from the US.