Rupee Inches 6 Paise Higher to 73.65 against US Dollar in Early Trade

On Tuesday, the rupee settled at 73.71 against the US dollar. “MSCI’s decision to tweak the Foreign Ownership Factor for Indian equities, taking into account the government’s decision to increase the cap on foreign portfolio investment in Indian equities to respective sectoral FDI caps, would push India’s weight in the MSCI EM index to 8.8 per cent from 8.1 per cent currently,” said Abhishek Goenka, Founder and CEO, IFA Global.

Goenka further added that “this is likely to result in inflows to the tune of USD 4 billion into Indian equities”. According to Goenka, USD-INR is likely to see range bound price action during the day. “We expect an intra-day range of 73.65-74.05,” he said.