Indian Rupee Wipes Overnight Gains, Weakens Against Dollar In Early Trade

The rupee opened stronger against the dollar on Friday, appreciating overnight to 64.11, 4 paise higher than its previous close. However, it quickly erased all of its overnight gains and was trading at 64.19 at 09.12 IST.

The rupee opened stronger against the dollar on Friday, appreciating overnight to 64.11, 4 paise higher than its previous close. However, it quickly erased all of its overnight gains and was trading at 64.19 at 09.12 IST.

Market participants said that the risk-on sentiment that gripped the market after the conclusion of the first round of the French presidential elections seems to have abated, albeit temporarily.

“The positive risk tone after the first round of French elections, appears to be taking a breather, after the mostly anticipated US tax cut plans and somewhat dovish ECB,” said Ashutosh Raina of HDFC Bank in an interaction with CNBC TV18.

“The USD-INR pair after briefly trading below 64 has seen some strong intervention and settled above that level. We expect the pair to trade in a range of 63.80-64.30/dollar today,” he said.

Dealers said that as soon as the market opened, importers and oil companies bought dollars in order to square off their transactions by the end of the month. They added that some of the weakness in the rupee was also due to an overnight appreciation of the dollar index.

The dollar index, which measures the strength of the greenback against a basket of six other currencies, was up 0.1 percent from its previous close.

Share This!
Show Buttons
Hide Buttons