Reuters Market Eye - The rupee turns marginally lower as state-run banks seen buying dollar likely to meet defence needs, foreign banks cover ahead of RBI's reference rate setting.
"There was some initial front-running on the mobile auction payment-related inflows that are expected in the next few days. However, subsequently dollar demand rose," says dealer.
The rupee is trading at 62.69/70 versus its close of 62.68/69, after rising to 62.5625 in early session, technical resistance seen at 62.70.
The index of the dollar versus six majors currencies trading down 0.11 percent.
BSE Sensex down 0.8 pct.
The euro licked its wounds near a 10-week low against the dollar on Monday after soft euro zone inflation data rekindled speculation the European Central Bank may ease policy to stave off deflation.
(Reporting by Subhadip Sircar)
