Globally, US dollar managed to claw back some gains, as Pound sold off. However, that did not have much effect on rupee. At the same time, news that Chinese Yuan touched a fresh life high against US dollar, had a positive rub on rupee.
After trading closed, Indian retail inflation for the month of December was released, which came in much better than consensus, at 9.87% compared with 11.16% in November. A sharp decline in food inflation, which dipped from 14.72% to 12.16%, pulled the headline inflation lower. December wholesale level inflation is scheduled for release on Wednesday.
Outlook: Over the near-term rupee can trade within a range of 61:00 to 61:80 on spot.
By Anindya Banerjee, currency analyst, Kotak Securities
NOTE: The views expressed are those of the author.