Indian rupee opens lower at 64.84 per dollar

The Indian rupee opened lower by 5 paise at 64.84 per dollar on Monday versus 64.79 Friday.

Pramit Brahmbhatt of Veracity said, “Weak cues from equity market and concerns about growth on the domestic front will keep the rupee under pressure.”

He further added, “We expect the USD-INR pair to trade in a range of 64.80-65.20 for the day.”

The euro slipped in early trading after Germany’s election showed surging support for a far-right party that left chancellor Angela Merkel scrambling to form a governing coalition.

Political uncertainty also took a toll on the New Zealand dollar after no single party won a majority in an election over the weekend.

While the yen weakened – helped by renewed hope for Prime Minister Shinzo Abe’s economic stimulus as he is expected to announce a snap election, to be held on October 22.

According to Motilal Oswal currency report, upside for the USD-INR pair could be capped in today’ session after the RBI increased corporate bond limit by Rs 44,000 crore. For the day, the pair is expected to quote in the range of 64.80 and 65.20.

Ajay Manglunia of Edelweiss said, “The borrowing calendar will be released towards the end of the week and further rise in yields is unlikely in the interim. The freeing up of corporate bond limits is expected to be a soothing factor although direct impact on G-Sec yields might be limited.”

“The 10-year benchmark bond yield is likely to trade in a range of 6.63-6.68 percent today,” he added.