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The Indian rupee on Monday held a narrow trading range once again as the Reserve Bank of India’s likely intervention last week discourages speculators.
The rupee opened unchanged at 82.3500 per U.S. dollar and was trading at 82.3475 by 0515 GMT. Since hitting a record low of 82.6825 last Monday, the rupee has been mostly rangebound as the RBI likely sold dollars.
The “RBI may continue its protection of certain levels,” said Anil Bhansali, head of treasury at Finrex Treasury Advisors.
That is likely the 82.30-82.40 range where the rupee spent quite a bit of time last week.
With the rupee “not doing anything” in the last few says, “it is natural” that speculative active has reduced, a trader at a private sector bank said.
“We could be in for a quiet week unless we have a big move on U.S. yields.”
Treasury yields, both longer- and shorter-term, were hovering just below multi-year highs. The prospect of more super-sized Federal Reserve rate hikes is weighing on demand for bonds.
The dollar index, meanwhile, dipped slightly, weighed by the recovery of the British pound. The U.K. currency rose on Monday following British Prime Minister Liz Truss’s partial reversal of her economic plan.
The U.S. data calendar is a bit light this week, with industrial production and housing numbers due. Of more interest will be comments from a number of Fed speakers due to speak this week.
Asian shares slipped to begin the week. Indian equities opened lower but recovered losses and were last trading 0.4% higher. India’s gauge, the BSE Sensex, is almost flat year-to-date, compared to the near 25% decline on the S&P 500 Index and the 30% fall in the MSCI emerging market equity index.
Rupee forward premiums dropped, extending last week’s plunge.
(Reporting by Nimesh Vora; Editing by Savio D’Souza)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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