Indian rupee may cling to subdued rhythm, improved port | Market Intelligence API | Briefly NewsStream
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Indian rupee may cling to subdued rhythm, improved portfolio inflows lend support
MUMBAI: The Indian rupee is poised for another subdued trading session on Tuesday with traders expecting the central bank to lean against pressure on the currency, while a modest pickup in portfolio inflows is also expected to offer support. Sustained hedging demand from local corporates and intermittent maturities of derivative contracts are among the pressures the rupee continues to contend with alongside persistently elevated oil prices. The Indian rupee is expected to open in the 95.70-95.75 range, per traders, having settled at 95.7450 to the dollar on Monday. Persistent central bank interventions have helped make the rupee among Asia’s quietest currencies over the last two weeks, anchoring it a under 30 paisa range between 95.45 and 95.75. “Any dips (on USD/INR) keep running into corporate bids while gains are firmly capped by the RBI. More of the same is likely in the near-term,” a trader at a state-run bank said. Improved foreign portfolio inflows have also been a soothing factor for the rupee. Overseas investors have net bought over $2.5 billion of Indian stocks so far in August, up from $2.1 billion last month and sustaining a reversal of 4 months’ worth of chu
