The rupee on Thursday opened 3 paise higher at 71.32 against the US dollarNSE -0.27 % following sustained inflows by foreign funds.

The local currency on Wednesday closed 15 paise up at 71.35 against the greenback.

This month until now, the FIIs have added over $3 billion in the equity segment and in the last three months total fund inflows have soared to a total of over $6 billion thereby keeping the overall sentiment positive.

“In the next couple of sessions, volatility for the rupee could be confined to a narrow range as most participants would remain cautious ahead of the important GDP and fiscal deficit number that will be released tomorrow evening. Today, USDINR pair is expected to quote in the range of 71.15 and 71.70,” brokerage firm Motilal Oswal Financial Services said.

Dollar rallied against its major crosses after Q3 preliminary GDP number showed that the economy could grow at 2.1 per cent compared to growth of 1.9 per cent.

Today, volatility for the dollar could be confined to a narrow range as US will remain shut on account of Thanksgiving holiday.

Published On : 28-11-2019

Source : Economic Times