Rupee inches lower as traders cover shorts; WPI eyed
Feb 14 2013 , Mumbai
"Investors had gone short dollar ahead of the five-day weekend, so the first thing they did is cover their shorts. But sentiment is offerish on the back of positive Asian currencies, so expect USD/INR to edge down later," a senior dealer with a foreign bank said.
Traders to watch domestic share market moves for cues on the direction of fund flows during the day.
The pair broadly seen holding in a 53.70 to 53.95, dealers say.
Traders will also watch the inflation data due around 11:30 a.m. for cues on the likely interest rate outlook. A Reuters poll expects the WPI to hit a three-year low of 7 percent, at a time of uncertainty on how aggressively the RBI will cut interest rates this year.