The Indian rupee traded high today in the early morning trade. It is trading higher by 30 paise at 68.45 per dollar compared with previous one, 68.75.
This hike was seen primarily because of the 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.