The Indian rupee moved up by 13 paise to close at 71.25 against the US dollar on Tuesday as forex market participants gauged improved sentiment in global markets amid efforts to contain deadly coronavirus. The Indian currency was also supported by Brent crude prices at lower levels and foreign fund inflows into domestic equities.
At the interbank foreign exchange market, the local currency opened at 71.24. During the day, the local unit saw a high of 71.09 and a low of 71.29. The Indian rupee finally settled at 71.25, up 13 paise over its previous close.
Analysts said after a lacklustre budget last week investors are focussing on other market moving factors like upcoming RBI policy and quarterly corporate results.
They added that efforts to contain the deadly coronavirus in China also helped improve investor sentiment.
The Reserve Bank of India’s monetary policy outcome could be the next trigger for the domestic unit, as its commentary on inflation and growth forecast will be
followed closely by the investors, they added.
The RBI is scheduled to announce the outcome of its sixth bi-monthly monetary policy statement for 2019-20 on February 6.