Indian rupee slips to 20.28 against UAE dirham
Dubai - The depreciation came as investors were awaiting cues from the US Federal Reserve's policy decision.
The Indian rupee depreciated four paise to 74.44 against the US dollar (20.28 versus the UAE dirham) at the opening of the market on Monday as investors were awaiting cues from the US Federal Reserve's policy decision expected this week.
The rupee opened at 74.43 against the dollar, but then it fell further to 74.44, registering a fall of 4 paise over its previous close.
"As markets brace up for the Fed meeting on July 28, all currencies are consolidating in their respective small ranges," Anil Kumar Bhansali, head of treasury at Finrex Treasury Advisors, told Press Trust of India.
Bhansali expects the rupee to trade between 74.30 to 74.70 against the greenback for the day, adding that "importers to buy cash near the lower end of the range while exporters to sell at the higher end".
The dollar index was trading down 0.05 per cent at 92.86.
"Investors will be closely eyed to assess the timing of the next bond taper, especially since labour market data is suggesting that economic recovery may have peaked," Reliance Securities said in a research note.
On the equity market front, BSE Sensex was trading 34.98 points or 0.07 per cent higher at 53,010.78, while the broader NSE Nifty advanced 14.50 points or 0.09 per cent to 15,870.55.