The Indian rupee is trading lower by 9 paise 71.65 per dollar versus previous close 71.56.

Rupee ahead of the important RBI policy statement is consolidating in range of 71.40 and 72.20 and most market participants are expected to remain cautious ahead of the new RBI governor’s statement. Expectation is that the RBI could consider cutting rates by 25bps and what will be important to watch is whether the central bank does change its stance, said Motilal Oswal.

Volatility for the USD-INR pair could be confined to a narrow range until the release of the policy statement. Today, USD-INR pair is expected to quote in the range of 71.40 and 72.20, it added.