Rupee to Open Nearly Flat, Holds Upper Hand as Dollar Remains Vulnerable

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Mumbai (Reuters) -The Indian Rupee is expected to Open Nearly Unchanged on Tuesday But Traders Reckon That The Currency Will Trade With An Upward Bias in the Near TERM AS CONCERNS AbOT Us Trade and Fiscal Policies Continue to Cast a Shadow on the Greenback.

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The 1-month non-deliveable forward indicated an open in the 85.07-85.10 range, Versus 85.0850 in the Previous Session.

The rupee climbed to a two-wheek high of 84.79 on monday but some of its gains in the face of dollar bids from a large state-ear bank and local oil comanies, traders said.

Dollar Bids from Oil Companies are likely to persist Since Crude Prisis are Attractive Right Now but “UPTICKS (On UsD/INR) are like to getly to get sold into,” A TRARDER At A Mumbai-BANK SAID

On the day, the dollar index was Hovering just shy of the 99-handle while asian currencies was flat to slightly higher.

In the Near Term, The Rupee is expected to Fluctate Between 84.60 and 85.30, said dilip parmar, a foreign exchange research analyst at HDFC Securities.

The Greenback is on course to log its fifth culture monthly Decline Against Major Peers and is Down Nearly 9% in 2025 So far, as appitite for us assets diminished amid a Fluurry Chanangs.

Analysts have also pointed to a pick-up in demand for Hedging Against us Dollar Weakness, which has added to the greenback’s truals.

“The ongoing changes create the opening for a ‘Global euro mot,” ECB President Christine Lagarde Said on Monday, Referring to the Troubles Confronting the Dollar. The euro has strengthened nearly 10% this year so far and was last at 1.14.

Analysts at dbs bank also pointed out in a note on Friday that china has adopted “a contraced and targeted approach in May to promote a larger interactive role for the cny,” As Global Confidence in the Dolera wanes.

** One-month non-deliveable rupee forward at 85.23; Onshore one-month forward premium at 15 paisa

** Dollar Index Down 0.1% at 98.83

** Brent Crude Futures Down 0.3% at $ 64.5 per barrel

** Ten-Year US Note Yield at 4.49%

** as per nsdl data, Foreign Investors Bough A Net $ 69.3 MLN Worth of Indian Shares on May 23

** NSDL Data Shows Foreign Investors Sold A Net $ 158.6 MLN Worth of Indian Bonds on May 23

(Reporting by jaspreet kalra; editing by eileen soreng)

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