NEW DELHI: Indian rupee on Tuesday was trading marginally higher against US dollar in the opening trade. At 9.15am, the rupee was trading at 71.75 a dollar, up 0.08% from its previous close of 71.81. The home currency opened at 71.70 a dollar.
Traders are cautious ahead of the key Reserve Bank of India meeting on Thursday. A majority of bank treasury heads surveyed by Mint expects RBI to announce a status-quo policy, while changing the policy stance from calibrated tightening to neutral. However, some bankers are not ruling out a 25 basis points (bps) cut before the upcoming general election. Falling inflation, along with an expansionary budget, could push the RBI to maintain the policy rates unchanged, said a section of bankers.
So far this year, the rupee has declined 2.7%, while foreign investors have bought $94.30 million in equity and sold $299.40 million in debt market.
The 10-year bond yield was trading at 7.407% from its Monday's close of 7.406%. Bond yields and prices move in opposite directions.
Asian currencies were trading mixed as most of the region’s major markets are closed for Lunar New Year holidays. China Offshore was up 0.22%, Philippines peso 0.1%, Taiwan dollar 0.08%, Malaysian ringgit 0.06%. However, China renminbi was down 0.68%, South Korean won 0.13%, Indonesian rupiah 0.1%, Japanese yen 0.06%.
The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.831, down 0.02% from its previous close of 95.852.