Rupee opens 13 paise up at 70.80 against dollar

The rupee on Tuesday opened 13 paise higher at 70.80 against the US dollar on the back of some foreign fund inflows into equities amid lower global crude oil prices.

The local currency on Monday consolidated in a narrow range and gains for the currency were capped on the expectation that the corporate tax cut could impact the fiscal deficit at the end of the year.

On the domestic front, market participants will now shift their focus on the RBI policy meeting that is scheduled in the first week of October. The expectation is that the Central bank could consider cutting rates and what the governor’s stance will be could trigger a move for the currency.

“Today, USDINR pair is expected to quote in the range of 70.70 and 71.30,” said Motilal Oswal Financial Services.

Euro and pound came under pressure against the US dollar after preliminary manufacturing PMI number released from the Eurozone and UK came in lower-than-estimates. Data showed preliminary manufacturing PMI for September came in at 45.6 compared to estimates of 47.6.

From the US, market participants will be keeping an eye on consumer confidence number; the better-than-expected number could support the greenback on lower levels.