Rupee opens flat at 71.55 against US dollar

The rupee on Wednesday opened flat at 71.55 against the US dollar. In the previous session, the domestic unit closed 23 paise lower at 71.57 amid fresh foreign fund inflows and gains in domestic equities.

Ahead of the important RBI policy statement, rupee is consolidating in range of 71.40 and 72.20 and most market participants are expected to remain cautious ahead of the new RBI governor’s statement, said Gaurang Somaiya, Research Analyst (Currency) at Motilal Oswal Financial Services. 

RBI may consider cutting rates by 25 bais points (bps) and it will be important to watch whether the central bank changes