USD/INR closed at 71.8650 against its opening at 71.84. The Indian rupee was higher against the US dollar in early trade today because growing expectations that the US Federal Reserve may lower interest rates to tackle possible economic fallout from coronavirus weighed on the greenback globally in overnight trade. As investors across the globe grappled with the potential slowdown in growth, CME Fedwatch tool showed that most market participants expect the Fed to cut the federal funds target range by June. Market participants also expect the European Central Bank to lower interest rates by 10 basis points by July. Most central banks in Asia have taken measures to mitigate a potential slowdown in economic growth in the region, caused by fast-spreading coronavirus, which may result in lower GDP growth in the March quarter. This drove the Chinese yuan higher by over 0.2% against the greenback in early trade, which may support the Indian currency as well during the day. Back home, expectations of foreign fund inflows into Indian companies may prompt traders to place bets in favour of the Indian unit, but in low volumes amid caution over implications of the virus, dealers said. Moreover, likely rise in domestic share indices may also support the sentiment for the Indian unit.