Rupee opens at ₹95.33, gains 7 paise before Fed minutes
The Indian rupee opened a bit stronger at ₹95.33 per US dollar on Tuesday, gaining seven paise from the last close.
While Asian currencies got a boost from cheaper oil and a weaker global dollar, the rupee's gains have been modest so far.
Most traders are playing it safe and holding off on big moves until the US Federal Reserve releases its meeting minutes on Wednesday.
Rupee at ₹94.80-95.00, importers hedge
Despite some positive global cues, the rupee isn't moving much because market sentiment is still shaky.
The ₹94.80-95.00 range has become an important support zone, with importers (especially oil companies) hedging their bets and corporates looking for opportunities in offshore markets.
As Amit Pabari, managing director of CR Forex Advisors, puts it, "the rupee is finding it difficult to gain," since everyone's staying cautious.
Rupee dipped to ₹95.48 Monday
Just a few days ago, on Monday, July 6, the rupee dipped to ₹95.48 before bouncing back slightly.
Where it heads next will depend on both global economic signals and what happens in Indian markets, so traders are keeping a close eye before making any big decisions in forex trading this week.