Rupee was trading in a range of 85.77/$1 to 85.87/$1 in the non-deliverable forwards segment in the early hours of April 3, suggesting that the rupee would open about 20 to 25 paisa weaker in the domestic segment.
“I am expecting some knee jerk reaction in the first hour of trading and then we may be stable, but I do not think we should go beyond 86/$1 today. Our major export competitors have higher tariffs so that is a positive,” said Kunal Sodhani, FX and rates treasury, Shinhan Bank India.
Traders expect the rupee to trade in a range of 85.50/$1 to 86/$1 on Thursday. The dollar index also weakened to 102.7 from previous days 104 levels.
“The average tariff rate appears higher than expected,” ING Bank said in a note and yields of the 10 year US Treasury yield dropped to 4.08% due to safe haven demand. UST yield was at 4.16% on Wednesday.
