Indian rupee gains 10 paise in opening trade

The Indian rupee gained in the early trade on Wednesday. It has opened higher by 10 paise at 64.79 per dollar against 64.89 Tuesday.

Pramit Brahmbhatt of Veracity said, “The rupee will float in a range today in the absence of any directional cues. We expect the spot USD-INR pair to trade in a range of 64.80-65.20 today.”

The dollar turned broadly lower, moving in line with declining US 10-year treasury yields and consolidating gains from Monday in light trading ahead of Thursday’s thanksgiving holiday in the United States.

Dhawal Dalal of Edelweiss said, “Bond market sentiment has improved dramatically after RBI’s cancellation of OMO sale. The 10-year benchmark bond yield has declined by around 16 bps to 6.90 percent.”

“Market participants are debating the next course of yield movement amid focus on macro-economic parameters, demand-supply dynamic and prospective introduction of the new 10-year government bond.”

“The fair value of the 10-year benchmark bond yield is between 6.75-7 percent in our opinion,” he added.