The Indian rupee opened marginally higher at 64.18 per dollar on Wednesday against previous close of 64.24.
The dollar edges higher, as US housing data encouraged speculation that the Federal Reserve will soon raise interest rates and it was further strengthened by worries that Greece was tilting towards debt default dragged on the euro. The dollar index inches towards the 95 mark.
Himanshu Arora of Religare said, "The rupee is expected to depreciate against the dollar today, amid expectations of interest rate hike that may happen sooner than later. This will prompt foreign investors to sell their investments in emerging markets, including India and channel their investments back to the US."
"Recent selling by FIIs in Indian debt market may continue going forward and is expected to dent INR in the short term. Weakness in domestic equities may also keep INR under pressure. Range for the day is seen between 63.85-64.38/dollar," he added.
Source:moneycontrol.com
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