The rupee opened little changed against the US dollar on Tuesday, as market participants awaited cues from the Federal Open Market Committee (FOMC) meeting on July 31.
At 09:05 AM, the rupee was trading at 68.72 a dollar, up 3 paise from its Monday’s close of 68.75. The home currency opened at 68.74 and touched a high and a low of 68.70 and 68.76 a dollar, respectively.
In the currency market, the dollar held near multi-month highs, as investors awaited the outcome of a two-day US Federal Reserve policy meeting.
The dollar was up 0.1 percent, hovering near a two-month high hit in the previous session.
The US Federal Reserve meeting outcome is expected on July 31, where the central bank is expected to lower its interest rate target range of 2.25 percent-2.50 percent by 25 basis points.
In commodity markets, oil prices extended overnight gains amid widespread expectations the US Federal Reserve will cut interest rates for the first time in more than a decade this week.
Brent crude rose 30 cents, or 0.5 percent, to $64.01 a barrel by 0013 GMT, after gaining 0.4 percent the previous session.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 1,503.26 crore on Friday, as per provisional data.
In debt markets, the yields on the 10-year government bonds were up 0.12 percent to 6.42 percent from its previous close of 6.41 percent. Bond yields and prices move in opposite directions.