Rupee hits 3-week high after record low CPI data
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The rupee hit 60.90 in opening trade, its highest since Sept 23.
The pair is trading at 60.96/97 versus Monday's close of 61.0950/1050.
While retail inflation in September hit record low, rate cuts by the RBI is still unlikely.
The pair will move in 60.90 to 61.20 range.
Traders expect caution to prevail ahead of the Maharashtra state election on Wednesday.
Most Asian currencies are also trading stronger compared to the dollar.
Nifty is trading 0.5% higher and will be watched for clues on foreign fund flows.
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