Rupee Rises 8 Paise to 71.58 Against US Dollar in Early Trade

The Indian
rupee on Tuesday was raised by 8 paise to 71.58 against the US dollar, as
investors were hopeful that the Reserve Bank will go for another rate cut to
boost economic growth.

Forex
traders said, the domestic unit is trading in a narrow range ahead of the RBI
monetary policy decision on Thursday.

At the
interbank foreign exchange, the rupee opened at 71.66, then gained and touched
a high of 71.58 against the dollar, showing a rise of 8 paise over its last
close.

The Indian
rupee on Monday had closed at 71.66 against the US dollar.

Bankers and
experts believe the Reserve Bank may cut interest rates for the sixth straight
time on December 5 to support growth that has continued to slip.

Traders said
rupee is trading in a narrow range as market is awaiting fresh indication on
the potential US-China trade deal.

The 10-year
government bond yield was at 6.48% in morning trade.