The rupee declined 9 paise to 70.88 against the US dollar in early trade on Wednesday on increased selling of the greenback by exporters despite softening crude oil prices.
The local currency opened at 70.81 against dollar as compared with the previous close of 70.79.
According to Motilal Oswal Financial Services, rupee consolidated in a narrow range of 70.70 and 71.20 on Tuesday and volatility for major crosses was also confined to narrow range ahead of the important G20 meeting scheduled during this weekend.
Market participants are cautious ahead of the important meeting between the US and Chinese President.
On Tuesday, volatility was seen in rupee after reports showed that there could be United States and China can work toward resolving their trade-related differences at the upcoming G20 Summit.
On the domestic front, no major economic data is expected to be released. “We expect that the USDINR pair could continue to consolidate in a narrow range. Today, USDINR pair is expected to quote in the range of 70.70 and 71.50,” Motilal Oswal said in a report.
Dollar remained supported on lower levels after a senior Federal Reserve official reaffirmed the need for further rate increases. Market participants on Wednesday will be keeping an eye on the preliminary GDP data and better-than-expected growth number could extend gains for the greenback.
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