Rupee opens 13 paise up at 88.52 against dollar tracking gains in Asian currencies

Indian rupee

Teh rupee opened 13 paise up on November 6, supported by the Reserve Bank of India (RBI) and gains in Asian currencies.

It opened at 88.52 against the US dollar after ending the previous session at 88.65.

"The currency pair looks largely steady with RBI being the only factor who has stepped in to avert rupee depreciation from the past all-time lows," said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.

On November 4, the RBI intervened in the NDF market to defend rupee from depreciating sharply and slipping to a new low, which helped the currency perform better.

According to the Bloomberg data, the Thai baht was up 0.23 percent against the US dollar, Malaysian Ringgit 0.17 percent, Japanese Yen 0.14 percent and the Singapore dollar was up by 0.11 percent.

The outlook for the rupee remains weak in November, with experts expecting it to test record lows amid persistent foreign funds outflows, dollar demand from oil importers and global economic uncertainty.

Bhansali expect the rupee to move in the 88.40-88.90 range, depending on how the RBI takes the currency forward. "We advise exporters to sell for the one-month period and importers to keep buying the dips for their near term imports and do hedging only when the fall is deep enough for far term," he said..