Indian rupee opens higher by 14 paise at 63.95

The Indian rupee opened higher by 14 paise at 63.95 per dollar on Thursday against previous close 64.09.

Mohan Shenoi of Kotak Mahindra Bank said, “Higher than expected US CPI has increased the probability of Fed rate hikes to 4 times this year including March. This coupled with sudden spurt in oil prices weakened the dollar and exerted upward pressure on US Treasury yields.”

“In-line with the global trend, the rupee is expected to strengthen against dollar today with a trading range of between 63.85-64.15.”

“The bond market in India is expected to be bearish today on the back of higher crude oil prices and US Treasury yields.”

“We expect the 10-year benchmark bond yield to trade in a range of 7.52-7.56 percent for the day,” he added.

The US dollar wilted after giving up gains against a basket of major world currencies after a stronger-than-expected report of US consumer prices raised expectations of price pressures and a faster pace of rate hikes by the Fed.