The rupee resumed lower at 64.91 per dollar as against the yesterday's closing level of 64.89 per dollar at the Interbank Foreign Exchange (Forex) Market. Later, it recovered on dollar selling by banks to 64.80 before falling again to 64.94 at 1100 hrs.
Since the start of the calendar year the rupee has gained nearly 6 percent against the dollar and 2 percent against emerging market currencies, largely on account of glad tidings on the economy and political fronts. Post demonetisation, it has gained from a strong showing by the BJP in the U.P. election and from parliament clearing hurdles for a GST launch. Crude oil prices continue to remain range-bound, with the OPEC nations curtailing oil production.
"Overall the rupee has been strengthening this year due to higher foreign fund inflows due to reforms like GST. But now exporters are also selling dollars on one hand and they are started covering (buying dollars) their position on the other," FirstRand Bank Treasury Head Harihar Krishnamurthy told PTI.
While markets do not expect the Federal Reserve to raise interest rates at its policy meeting later on Wednesday, the central bank is tipped to lift rates twice more this year, with one likely as early as next month, which would be supportive of the dollar.
The rupee resumed higher at 64.12 a dollar as against the last weekend's level of 64.24 at the Interbank Foreign Exchange market and moved in a range of 63.9975 and 64.19 before quoting at 64.18 at 1100 hours.
India needs to have supportive exchange rate policies and the rupee shouldn't become too strong, Chief Economic Adviser Arvind Subramanian said today.
The 30-share Sensex was down was down 103.61 points at 30029.74, while the Nifty was down 9.70 points at 9342.15.
The rupee resumed higher at 64.42 against the dollar as against yesterday's closing level of 64.44 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to a 3-week high at 64.27, before quoting at 64.29 per dollar at 1100hrs, showing a gain of 15 paise.
The rupee resumed lower at 64.64 per dollar as against its last closing level of 64.56 at the Interbank Foreign Exchange (Forex) Market. It dropped further to 64.67 in view of initial dollar demand from banks and importers on the back of higher greenback in the overseas market.
USD-INR trading range for the day is 64.50- 64.80/dollar, says Mohan Shenoi of Kotak Mahindra Bank.
Capital outflows, in small lots, also weighed on the rupee while rally in domestic equities restricted the rupee fall to some extent, a forex dealer said.
We expect the USD-INR pair to trade in a range of 64.40-64.70/dollar for the day, says Mohan Shenoi of Kotak Mahindra Bank.
Since the start of this year, the rupee has had a steady appreciation in line with other emerging market currencies, Kotak Institutional Equities said in a research note.
Benchmark indices closed higher for first time in last four trading sessions, with the Sensex gaining more than 200 points.
I expect the USD-INR pair to trade in a range of 64.45-64.65/dollar, says Bhaskar Panda of HDFC Bank
I expect the USD-INR pair to trade in a range of 64.45-64.65/dollar, says Bhaskar Panda of HDFC Bank.
The rupee opened marginally lower at 64.30 against last Friday's level of 64.28 here today. It moved in a range of 64.50 to 64.30 during morning deals before quoting at 64.49 at 1025 hours. Meanwhile, the dollar index was trading steady at 101.23 against a basket of six currencies.
Trading range for the spot USD-INR pair will be 64.20-64 70/dollar, says Pramit Brahmbhatt of Veracity.
The RBI held the repo rate at 6.25 percent on Thursday, as widely expected, and raised its inflation forecasts, increasing expectations it could even tighten should prices accelerate.
We expect a trading range of 64.30-64.80/dollar in the near term, with RBI expected to support at lower levels, says Ashutosh Raina of HDFC Bank.
We expect the USD-INR pair to trade in a range of 64.85-65.15/dollar for the day, says Mohan Shenoi of Kotak Mahindra Bank.
The rupee is likely to remain rangebound today and stay between 64.90-65.10/dollar, says Bhaskar Panda of HDFC Bank.
We do not expect to see much movement on bond yields before the policy is out, says Bhaskar Panda of HDFC Bank.
The trading range for spot USD-INR pair is seen between 64.80-65.20/dollar, says Pramit Brahmbhatt of Veracity.
Commenting on specific sectors, Bhat is positive on white good makers which have been consistent performers on a year-on-year basis.