Rupee gains 10 paise against the US dollar at 75.48

The rupee on Tuesday opened 10 paise higher at 75.48 against the US currency on easing crude oil prices and a weak dollar in overseas markets.

On the domestic front, no major economic data is expected to be released but market participants remain cautious and await for more clarity on the ongoing tension between India and China.

The pressure on the currency may continue ahead of the PM’s address to the nation as that could trigger volatility not only in equities but also in the currency and debt market.

Market participants will also be keeping an eye on the fiscal deficit number and the weaker-than-expected number could dampen the overall sentiment of the market.

“For the day, we expect the USDINR (Spot) could quote in the range of 75.40 and 76.05,” brokerage Motilal Oswal Financial Services said in a report.

The dollar rebounded sharply from its intraday lows in yesterday’s session following safe-haven buying as the number of coronavirus cases reported in the US has been on the rise. Fear of a second wave of the pandemic is taking the shine off improving economic data.

Today, the focus will be on the Fed Chairman testimony and would be important to determine a trend for the greenback apart from the increased number of coronavirus cases reported globally.