In Thursday's session, Indian rupee gained ground and opened higher by 8 paise at 73.87 per US dollar against Wednesday's close of 73.95. Yesterday, on the back of rift between the government and RBI, rupee headed to its two-week low. The development has been amid a tough situation between the central bank and the centre after Viral Acharya, deputy governor of the RBI, in a fiery note said that central bank's independence should not be undermined and it could be "potentially catastrophic".
But declining to move back, the government in a press release stated that RBI's functioning needs to be "guided by public interest and the requirements of the Indian economy".
Further, broad gains in the US dollar against a basket of major emerging currencies also influenced rupee's fall. As per the Motilal Oswal report, dollar gained due to better than expected economic data and also ahead of the significant non-farm payroll data that is due to be released tomorrow.
It is expected that rupee US dollar pair will trade in the range of 73.80- 74.15/$.