Rupee opens 6 paise higher against US dollar, may trade range-bound amid mixed cues

The Indian rupee opened 6 paise higher at 82.30 per dollar on Wednesday against the previous close of 82.36. USDINR Sport is likely to trade with a positive bias, and quote in the range of 82.10 and 82.60. The local currency is expected to trade in a range of 82.25-82.75 per dollar in the near-term amid pressure from a stronger dollar, factors such as high domestic inflation, as well as, rising risks on the external front. In the previous session, rupee pared its initial gains to close higher against the US dollar in a restricted trade. At the interbank forex market, the local unit opened at 82.21 against the greenback, and ended at 82.37, down 7 paise from Monday’s close.

Aditi Gupta, Economist, Bank of Baroda

Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services

“Rupee continued to consolidate in a narrow range and volatility remained low following suspected RBI intervention at lower levels. Yesterday, the dollar gained after data showed production at US factoriesrising in September. Volatility continued to remain elevated after Britain’s new Finance Minister earlier this week scrapped Prime Minister Liz Truss’s economic plan, which had sapped investor confidence in Britain in recent weeks.”

“Relief at the U-turn prompted a rally in risk assets.The Bank of England said yesterday that it would go ahead with plans to start selling some of its huge stock of government bonds. Today, focus will be on the inflation number that will be released from the Euro zone and the UK.We expect the USDINR(Spot) to trade with a positive bias and quote in the range of 82.10 and 82.60.”

Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors

With the dollar index below 112, Brent oil at $ 90.82 per barrel Indian Rupee may trade at 82.30 in opening trade as risk-on sentiments continue for the fourth day. KRW was at 1415 this morning while yuan was at 7.22 and IDR at 15477 keeping them range bound except for the South Korean currency which has gained slightly. Yesterday rupee made a high of 82.02 before tumbling down to 82.40 at the close of the day due to buying by oil and some suspected intervention by RBI in currency futures from $ buy side. For the day the range of 82.00 to 82.50 continues. Exporters are to hold Dollars with a stop loss of 82.00 while importers are to hedge the dips.”

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