After closing at a record low in Monday's trading session, the domestic currency rupee opened with gains at 70.02 for a dollar. The rupee fell in yesterday's trade even as the dollar retreated to a week low after being down by 1%.
Dollar index is hovering at levels close to 95.
The decline in rupee currency even after the dollar fell sharply hints at the intrinsic influence on the Indian currency. The rupee's direction in the week ahead will be governed by two important numbers slated to be released this week, the US GDP will be released on Wednesday. Domestic GDP numbers on the other hand will be declared on Friday.
A strong GDP number will weigh on a faster increase in the US interest rates that will augur well for the dollar currency and create pressure for the domestic currency.
Off late, to curb any further downfall in the rupee, the RBI has been aggressive on selling dollar and this is imminent from the forex reserves which have depleted heavily in the past few months.
As per experts, the rupee is likely to trade range-bound between 69.4 and 70.4 in the near term.