INR staying in narrow band; RBI eyed

The Indian rupee is staying within a narrow band in opening trades on Monday tracking positive cues from equities and weakness in dollar overseas. Indian shares opened higher as in-line U.S. inflation data helped increase confidence the Federal Reserve will continue lowering interest rates in the coming months to bolster a cooling labor market. INR commenced at Rs 88.69 dollar and dipped to a low of 88.72 so far during the day. RBI's upcoming interest-rate decision may influence trading sentiment as the week progresses. Meanwhile, the dollar index fell under 98 on Monday, extending losses for a second session as the prospect of a US government shutdown weighed on sentiment and investors awaited key economic data this week. Parts of the government would reportedly close on Wednesday if Congress fails to pass a funding bill before the fiscal year ends on Tuesday.

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