Indian rupee opens lower at 65.28 per dollar

The Indian rupee opened lower at 65.28 per dollar on Thursday against previous close 65.21.

Mohan Shenoi of Kotak Mahindra Bank said, “Delays in US tax reforms has reversed earlier dollar gains against major currencies. The rupee has recovered from weakness caused by weaker domestic stock and bond markets. We expect the USD-INR to trade in a range of 65.20-65.50 for the day.”

He further added, “Higher than expected CPI and WPI has turned domestic bond market bearish. However, drop in crude prices and US 10-year treasury yields has provided some respite to the rising bond yields.”

“We expect the 10-year benchmark bond yield to trade in a range of 7.01-7.04 percent for the day.”

The dollar trimmed losses against a basket of major currencies after data showed a surprise rise in retail sales last month as well as an uptick in underlying inflation, raising expectations for an interest rate hike in December.