On Tuesday, Indian currency opened a tad higher at 73.80 vs previous closing of 73.83.
In yesterday's trade, rupee weakened past 74 mark in the afternoon trade but later gained on the back of strong trade deficit data for the month of September at USD 13.98 billion, hitting a five-month low. For the previous month trade deficit came in at USD 17.39 billion.
Exports were dragged lower to USD 27.95 billion, a decrease of 2.15% in comparison to exports reported for the same month last year. On the other hand imports increased 10.45% to USD 41.9 billion, lowest in five months time. This is even as the oil import bill for India has been increasing in the wake of rising crude oil price and US sanctions on Iran in November, which is likely to reduce crude oil volume substantially from the markets world over.
Also, weakness in the greenback has lend some support to the currency which might see appreciation over next some sessions. As per a brokerage firm, the USD-INR pair is likely to trade in the range of 73.60-74.20 per US dollar.