The rupee was trading 7 paise higher at 71.10 against the US dollar on Tuesday on account of some selling in American currency by banks and exporters. The local currency opened almost flat at 71.16 after settling at 71.17 against the US dollar on Monday. The rupee gained over 10 paise on Monday buoyed by RBI’s interest rate cut as well as lower oil price providing tailwinds. Moves in Euro and other currencies against the US dollar remain key triggers for the local currency.
“This week investors would be tracking the development on the Brexit front. Any positive news could see relief rally in Euro and British pound,” ICICIdirect said in a report. According to NB Commodity Research, on daily chart, the pair has formed a red candle with lower lows and lower highs indicating weakness in the pair. Selling in the pair can be initiated below 71.45 -71.35 towards 71.15 levels. However, if the pair trade above 71.5, buying momentum will be witnessed towards 71.65-71.75 levels.