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Indian rupee opens higher, holds near 95.50 per dollar range
The RBI is expected to limit moves above 96.00, while any pull toward 95.00 could spur new importer hedging demand, keeping the rupee in a defined trading band.
The Indian rupee opened about 3 paise higher at 95.51 per US dollar on Friday, helped by steady importer demand for the greenback and continued Reserve Bank of India intervention, according to LiveMint Markets. The currency has traded in a tight range this week, moving between 95.40 and 95.75 and effectively finding a temporary equilibrium at current levels, the outlet said, citing a Reuters report.
Oil prices hovering near $90 a barrel have been largely absorbed by the market, LiveMint Markets reported, with RBI support expected to cap upside beyond 96.00. Bankers also said a move down toward 95.00 is likely to trigger fresh hedging demand from importers, forming a trading band with importer dollar demand acting as a floor.
The rupee is also being influenced by broader dollar factors. LiveMint Markets noted that US borrowing costs remain supportive of the dollar, with the 30-year US Treasury yield having climbed to its highest level since 2007, alongside a US labor-market signal from initial jobless claims falling to 203,000 last week, below expectations. The outlet added that attention remains on closely watched remarks from the Federal Reserve chief, with any deviation from expectations seen as potentially moving the dollar sharply.