The Indian rupee erased some of its morning losses but trading lower by 7 paise at 69.22 per dollar versus Friday's close 69.15.

Rupee is expected to open on a flat note and could to trade with a positive bias after the RBI announced to conduct USD 5 billion dollar-rupee swap auction on 23rd April following the success of the first round last month, said Motilal Oswal.

The swap auction comes ahead of the important RBI policy statement that is scheduled this week. The central bank is expected to cut rates and a dovish statement could put pressure on the rupee.

While the swap will bulk up India’s foreign-exchange reserves, there’s concern that using the forex swap may reduce the need for the RBI to buy debt from the market.

Today, USD-INR pair is expected to quote in the range of 69.20 and 69.80, it added.

Published On : 02-04-2019

Source : Money Control