Indian rupee opens lower at 65.20 per dollar

The Indian rupee opened marginally lower at 65.20 per dollar on Thursday versus previous close 65.18.

Mohan Shenoi of Kotak Mahindra Bank said, “Fed Chair, Powell’s, Congressional testimony points towards four rate hikes this year as Fed tries to balance between growth and higher than target inflation.”

“This is leading to dollar strength across the board with the dollar index back above 90 levels. Rupee spot and forwards are under pressure as availability of dollar credit has reduced recently. I expect the USD-INR to trade in a range of 65.15-65.45 today.”

“Indian economy is gradually recovering from cyclical and structural bottlenecks as evidenced by higher than expected Q3 GDP growth of 7.2 percent (YoY). This is bearish from a bond market perspective.”

“We expect the 10-year benchmark bond yield to trade in a range of 7.73-7.78 percent for the day,” he added.

The dollar gained to five-week highs bolstered by an upbeat assessment of the US economy from the Federal Reserve’s new chairman Jerome Powell.