Rupee settles at 8 paise higher at 71.66 a dollar

The Indian rupee on Monday settled 8 paise higher at 71.66 against the US dollar amid participants hoping Reserve Bank will go for another rate cut in the ensuing RBI policy review meet this week.

Forex traders said the domestic currency opened weak as investors traded cautiously after India's Q2 GDP growth dipped to an over six-yr low of 4.5 percent, but during the day, the local unit gathered strength anticipating further easing in key rates to boost the slowing economy.

At the interbank foreign exchange, the rupee opened weak at 71.78 a dollar but soon gathered strength to touch a high of 71.62 before finally settling at 71.66, up 8 paise over its last closing.

The Indian unit on Friday had closed at 71.74 against the US dollar.