The Indian rupee opened flat against the US dollar on October 7, with investors focused on whether the central bank will deliver its first rate hike in more than three years and how it plans to manage surplus banking system liquidity.
The rupee opened flat at 96.42 per dollar, compared with Tuesday’s close of 96.42.
According to Finrex, the Rupee is expected to open almost unchanged at 96.42 as oil prices rose to $ 101.50 per barrel as a refinery in Venezuela exploded while there were attacks in Strait of Hormuz.
We have the RBI monetary policy today in which RBI is expected to raise rates by 25 bps with an outside chance of a 50 bps raise.
The RBI may also raise the CRR by 1% to 4% to absorb the excess liquidity. We await for RBI stance on the falling rupee which has lost month than 2% in the last 1 month with oil demand and FPI demand for dollar keeping the rupee lower.