Indian rupee opens higher at 64.12 per dollar

The Indian rupee opened higher by 12 paise at 64.12 per dollar on Wednesday versus 64.24 Tuesday.

Pramit Brahmbhatt of Veracity said, “Safe haven buying resulted in a stronger dollar. We expect the USD-INR pair to trade in a range of 64-64.50 for the day.”

The US dollar ended weaker against the euro but is firmer against the yen on the back of some safe-haven buying.

Dhawal Dalal of Edelweiss AMC said, “Bond market participants are awaiting the MPC’s thoughts on inflation trajectory, liquidity and likely demand-supply imbalance in light of the Union Budget for FY19.”

“We expect the MPC to maintain a status quo on rates but sound a bit hawkish amid prospects of a pick-up in CPI due to increase in MSP for farmers and higher crude oil.”

“We expect the 10-year benchmark bond yield to trade between 7.55-7.65 percent in the near term but trend towards 7.80 percent in the medium term from a technical perspective. That said, there is value in government bonds and market positions are relatively light.”