MUMBAI: The Indian rupee on Wednesday is poised to build on the previous session’s relief after President Donald Trump brushed off the dollar’s recent weakness, accelerating its slide and pushing it to multi-year lows.
The 1-month non-deliverable forward indicated the rupee will open in the 91.48-91.52 range versus the U.S. dollar, having settled at 91.72 on Tuesday.
The rupee found relief on Tuesday after a prolonged spell of near-constant pressure, with a softer dollar tempering one-sided dollar demand that has weighed on the currency in recent weeks.
It was enough to allow a 0.2% rise in the currency, a modest move that stood out against the depth and persistence of recent selling pressure, traders said.
“The move wasn’t driven by fresh rupee positives, it was more of a pause in aggressive dollar buying,” a senior FX dealer at a private bank said.
“For now, you would say this is just a small reset in market dynamics. The underlying trend (on dollar/rupee) remains higher.”
American Dollar Exchange Rate