Indian rupee opens higher at 64.70 per dollar

The Indian rupee opened higher by 5 paise at 64.70 per dollar on Wednesday versus 64.75 Tuesday.

Pramit Brahmbhatt of Veracity said, “A weak dollar will help the rupee appreciate for the day. Sustainable trade below 64.80, will open further room for rupee appreciation.”

“The trading range for the spot USD-INR pair will be between 64.50-65,” he added.

The dollar edged higher, underpinned by solid US data, and logged toward its strongest monthly performance since February. Markets await a whole host of central bank meetings this week and the nomination of the next Fed chair.

Dhawal Dalal of Edelweiss said, “Bond market participants got spooked by the reports of possible SLR status to bank recap bonds. As a result, government bond yields hardened at the long end with the benchmark 10-year yield coming in the vicinity of 6.90 percent, a technically significant level. That said, we believe that bond yields are attractive.”

“With Oct CPI inflation expected below 4 percent, we expect value buying to emerge in the near term. We expect the 10-year benchmark bond yield to trade between 6.80-6.90 percent in the near term,” he added.