Indian rupee opens lower at 64.45 per dollar


The Indian rupee opened lower at 64.45 per dollar on Wednesday versus previous close 64.38.

Pramit Brahmbhatt of Veracity said, “Rupee will take cues from RBI’s monetary policy decision. Expect stability in the currency.”

“Trading range for the spot USD-INR pair will be 64.20-64.80,” he added.

Dollar strengthened versus a basket of major currencies as investors track developments in Washington where US lawmakers are attempting to pass a tax reform bill.

According to Dhawal Dalal of Edelweiss AMC, Bond market participants will be eager to know the MPC’s views on recent increase in oil prices and its likely impact on inflation and CAD.”

“Market participants would like to hear RBI’s views on banking system liquidity going forward amid reports of improvement in credit offtake.”

“A hawkish tone by MPC may have the potential to push yields above the crucial 7.10 percent mark for the 10-year bond. That said, market positioning is light at the moment. A tinge of positive outlook may push yields towards 6.90 percent,” he said.