The Indian rupee is trading higher by 26 paise at 71.29 as compared to previous day close of 71.55.
Rupee in the last few sessions consolidated in a wide range of 71.20 and 72.30 ahead of the important FOMC policy statement that will be released tomorrow. Expectation is that the Fed could consider raising rates by 2bps and a hawkish stance could extend gains for the greenback. On the domestic front, rupee extended its gains after India’s trade deficit narrowed in November, said Motilal Oswal.
Data showed trade deficit narrowed to USD 16.67 billion compared to USD 17.13 billion in the previous month following drop in gold imports. India’s gold imports fell 15.59 percent to USD 2.76 billion in November. Today, USD-INR pair is expected to quote in the range of 71.20 and 71.80, it added.