Rupee flat against dollar at 90.75, traders await cues

Rupee

The rupee opened steady on February 10, as traders stayed on the sidelines for further cues, while importers bought the greenback to take advantage of the the current currency levels to hedge positions.

The rupee was trading 90.75 to the dollar after ending the previous session at 90.76. The rupee ended lower on February 9, as importers bought dollars.

Foreign portfolio inflows, however, have propped up sentiment in the equity market. Foreign institutional inflows have exceeded over $2 billion in the past nine sessions, though traders are cautious about the sustainability of foreign buying.

“While this has helped stabilise sentiment, the market remains unconvinced about the durability of these flows. With global policy signals shifting almost daily, the currency market continues to price in caution rather than celebration,” Amit Pabari, the managing director at CR Forex Advisors said.

The renewed buying comes as India and the United States agreed to an interim trade agreement week, which included a reduction in tariffs for Indian goods and the stoppage of purchase of Russian oil.

Investors will now look forward to the employment and consumer price index data from the United States before making fresh bets on the rupee.