Indian rupee opens lower at 64.79 per dollar

The Indian rupee opened marginally lower at 64.79 per dollar on Tuesday against previous close 64.74.

Vivek Rajpal of Nomura said, “The environment is constructive on INR. Exports pick-up provides some cheer/relief to the economy at large.”

“Fiscal deficit is a concern from medium-term perspective. But, if fiscal deficit largely remains under control, then INR should continue to perform well in the medium term,” he added.

The dollar held gains against the yen and euro, supported by a rise in treasury yields following a report that US President Donald Trump was favoring a policy hawk as the next head of the Federal Reserve.

Markets also took heart from Trump’s conference where he reiterated that reforms to tax policy would be completed by year-end.

Ashutosh Khajuria of Federal Bank said, “For interest rate market, there is no major trigger. Wholesale inflation data, already out yesterday suggests lower inflation and should be conducive to the bond market, which has already been built in the price.”

“For the day, we expect the 10-year benchmark bond yield to trade in a really narrow range,” he said.