Offshore was indicating a quiet open, but dollar-rupee short positions will be counting on a favourable momentum
AFP file photo
The Indian rupee slightly dropped against UAE dirham as markets opened on Tuesday.
The South Asian currency was trading at 81.69 to the dollar (22.26 against the UAE dirham) at around 9am, marking a dip of 0.12 per cent.
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Experts said, however, that the rupee would be looking to rise versus the US dollar today, on the back of rise in Asian currencies and positive risk mood.
Offshore was indicating a quiet open, but USD/INR short positions will be counting on a favourable momentum to take pair below the next support of 81.75, a spot trader at a bank said.
"If RBI (Reserve Bank of India) keeps away, we see a decent chance of a breakdown."
Asian currencies rose, with the offshore Chinese yuan leading the way while the dollar index inched lower to near 101.30. Investors await the result of the two-day US Federal Reserve meeting, due on Wednesday.
Ahead of the Fed decision, data indicated that the US economy was still growing as the third quarter began, but at a slower rate from the April-June period.
Attention is firmly fixed on the Fed meeting, ANZ said in a note. The flash PMI data are consistent with the Fed pausing rate hikes after raising it by 25 basis points this week, it said.
(With inputs from Reuters)
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