Rupee trades higher at 68.65 per dollar

The Indian rupee extended morning gains as it is trading higher by 10 paise at 68.65 per dollar versus previous close 68.75.

Rupee rose against the US dollar primarily as foreign fund inflow continued in April after huge inflows in the previous month. Last month, the FIIs added USD 6.6 billion in the equity and debt segment and yesterday in a day added another USD 2.1 billion, said Motilal Oswal.

The equity segment added USD 1.3 billion and debt segment added USD 723 million. Consistent inflows suggest that FIIs remain bullish on the Indian growth story. Momentum of flows in the recent past has been positive also as market participants are expecting that the RBI could consider cutting rates tomorrow.

The central bank is expected to remain dovish and that could restrict major appreciation for the currency. Today, USD-INR pair is expected to quote in the range of 68.80 and 69.40, it added.