A man counts Indian banknotes inside a store in Mumbai, India, August 13, 2018. Reuters/Francis Mascarenhas/File Photo Obtaining license rights
MUMBAI, Sept 11 (Reuters) – The Indian rupee is expected to remain above 83 rupees to the dollar on Monday, on the back of gains in most Asian currencies and bets on further central bank intervention.
Non-deliverable forwards suggest the rupee will open around 82.92-82.96 to the dollar, little changed from the previous session of 82.9450 rupees.
At the beginning of the week, Asian currencies mostly rose, while the dollar index fell slightly.
The rupee “ostensibly” managed to stay above the exchange rate’s 83 level, with positive cues in Asia “on the edge” and the Reserve Bank of India’s (RBI) intervention on Friday afternoon. It should be maintained. said a trader at a Mumbai-based bank.
“Importers are doing well and we don’t think the decline (in USD/INR) will be that big.”
The RBI on Friday afternoon carried out aggressive interventions through the public sector, which traders said is likely to keep USD/INR from crossing $83 at the weekly close.
The rise in Asian currencies is believed to be due to the rise in the Japanese yen after the Bank of Japan Governor suggested the possibility of ending the negative interest rate policy as the 2% inflation target is in sight.
The offshore Chinese yuan rose 0.4% to 7.3350 yuan to the dollar, on the back of a stronger yen and further boost in China’s stock market.
The main focus for Asian currencies this week will be US inflation data released on Wednesday. The statistics come amid expectations that the US Federal Reserve will take a tough stance at its September meeting.
ANZ predicted that the US core consumer price index would rise 0.2% month-on-month in August.
“This is enough for the Fed to forego a rate hike in September, but not enough to rule out further rate hikes in the future,” the report said.
Key indicators: ** 1-month non-deliverable rupee forward at 83.03.Onshore 1-month futures premium is 9 paisa ** USD/INR NSE September futures settle on Friday at 83.07 ** USD/INR September futures premium is 5 paisa
** Dollar index falls to 104.74 ** Brent crude oil futures fall 0.4% to $90.3 per barrel
** US 10-year bond yield rises to 4.30%
** Foreign investors made net sales of $86.4 million worth of Indian stocks on September 7, according to NSDL data.
** According to NSDL data, foreign investors bought a net worth of $49 million worth of Indian bonds on September 7
Report by Nimesh Vora.Editing: Janan Venkatraman
Our standards: Thomson Reuters Trust Principles.
