Rupee opened high as long winning streak of dollar ended. The currency opened on 61.355 against Mondays close of 61.405.
Dollar index reached at four year high on Monday due to changing global monetary policies and positive reading of U.S. economic data. DXY weakened as factory orders and trade deficit widened yesterday.
U.S. Factory Orders fell to -0.6% against expectation of -0.4% and trade gap widened at $43.0b for September compare to $40b in August.
Dollar selling by traders has also stopped USD rally in international market. Profit booking may show some recovery in EUR and JPY.
HSBC will release India Service PMI today which is expected at 1030 India time. Expansion in the index may further strengthen the currency. Earlier this week Manufacturing PMI changed a little and came to 51.6 for October from 51.0 in Sept.
Rupee is likely to trade within range of 60.90 to 61.80. We may not see major movement in intraday trading.