Rupee advances 10 paise to 70.79 against dollar ahead of RBI policy outcome

New Delhi: The rupee was trading 10 paise higher at 70.79 against the US dollar in the early trade on Friday ahead of the RBI monetary policy outcome.

The local currency, however, opened almost flat at 70.88 against the previous close of 70.90 per dollar.

There are hopes that the central bank could consider cutting rates by 25 bps but at the same time what stance the RBI adopts will trigger a move for the currency.

“In the first half of the session volatility for the rupee could be confined to a narrow range but post the RBI commentary volatility for the rupee could increase. Today, USDINR pair is expected to quote in the range of 70.70 and 71.50,” brokerage Motilal Oswal Financial Services said in a report.

Dollar remained under pressure for the third successive session after a disappointing services PMI number that was released on Thursday.

Data showed services PMI expanded at a slower pace in September compared to the previous month.

Services PMI came in at 52.6 in September compared to 56.4 in the previous month. From the US, market participants will be keeping an eye on non-farm payrolls number. A weaker-than-expected jobs number could continue to weigh on the greenback.