Indian rupee opens weak at 64.54 per dollar; down 23 paise

The Indian rupee slipped in the opening trade on Thursday. It has opened lower by 23 paise at 64.54 per dollar versus 64.31 yesterday.

Mohan Shenoi of Kotak Mahindra Bank said, “Strong US data, progress in US tax reform bill and Powell’s statements indicate December US Fed rate hike is on track. US Dollar has rallied and stabilised against most majors except pound which rallied on progress of Brexit talks.”

“The rupee is strong on the back of custodial flows. We expect the USD-INR to trade in a range of 64.25-64.55 for the day.”

“Buyback of short-dated bonds by government is positive for the bond market. Traders are now awaiting Q2 GDP data, April-October fiscal update and outcome of the OPEC meeting.”

“We expect the 10-year benchmark bond yield to trade in a range of 7-7.05 percent for the day,” he added.

The dollar edged higher as strong US third-quarter economic growth data and signs of progress in US republicans’ efforts to get a tax bill passed helped the currency rebound from recent weakness.

Meanwhile, the pound hit a two-month high as negotiations between the UK and the European Union made progress.