MUMBAI, Dec 15 (Reuters): The Indian rupee was expected to be little changed on Friday amid more losses for the US dollar and likely orders to sell the local currency.
Non-deliverable forwards indicate the rupee will open broadly unchanged from 83.33 in the previous session.
The dollar has "suffered a further selloff", and for the rupee that just means that 83.40-83.42 "is safe", a FX trader at a bank said.
"To expect any other (effect) will be too optimistic considering the customary (dollar buy) orders we are used to."
The USD/INR has repeatedly run into buying interest on the smallest of dips over the last several sessions. Importers and dollar purchases by public sector banks have kept dips in USD/INR shallow.
The dollar index on Thursday dropped to the lowest in four months, thanks to the rally on the euro and the UK pound. The euro climbed to 1.10 to the dollar on Thursday after European Central Bank president Christine Lagarde pushed back on expectations of aggressive rate cuts.
The Bank of England too did not endorse rate cuts in 2024.
"The ECB and BoE signalled high-for-longer interest rates," ANZ said in a note.
Rupee to see dollar selloff undermined by 'customary' sale orders
FE Team | Published: December 16, 2023 00:23:35
Rupee to see dollar selloff undermined by 'customary' sale orders
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