Indian rupee slips to 3-month low at 65.12 per dollar

The Indian rupee slipped to the 3 months low in the early trade on Wednesday. It has opened lower by 25 paise at 65.12 per dollar versus 64.87 Tuesday.

Pramit Brahmbhatt of Veracity said, “A stronger dollar and weak domestic equity market will continue to put pressure on the rupee.”

“We expect the spot USD-INR pair to trade in a range of 64.80- 65.20 today,” he added.

The dollar stood near a three-week high against a basket of currencies on Wednesday, after Federal Reserve chairman Jerome Powell’s upbeat views on the economy bolstered bets on further Fed interest rate hikes this year.

The dollar index, which measures the greenback against a basket of six major currencies, last stood at 90.414, after hitting a high near 90.50 on Tuesday, its strongest level in almost three weeks.

Dhawal Dalal of Edelweiss said, “Indian government bonds appear to have stabilised after the 10-year benchmark bond yield touched 7.80 percent last week. We expect government bonds to consolidate at current levels before charting their next course based on the developments in the local and global macro-economic landscape.”

“A weekly close below 7.60 percent may indicate a reversal in the current uptrend in yields. That said, we expect the 10-year benchmark bond yield to trade in a range of 7.65-7.75 percent in the near term,” he added.