The Indian rupee opened higher against the US dollar on Friday, tracking the slight easing in the American currency and likely intervention by the Reserve Bank of India beyond Rs 84 in the previous session. However, as month-end dollar demand from importers picks up, the rupee may come under pressure.
The local currency opened at Rs 83.93 per dollar, according to Bloomberg data. It had closed at Rs 83.95 on Thursday.
“The Reserve Bank of India likely intervened in the non-deliverable forward market on Thursday to bring the rupee back within the Rs 84 level after it briefly passed the mark,” said Anil Kumar Bhansali, head of Treasury and executive director at Finrex Treasury Advisors LLP.
He expects the domestic currency to trade in a narrow range of Rs 83.85–84.00.
According to Bhansali, exporters may wait and watch for further weakness in the rupee, with a stop loss of Rs 83.75 for hedging, while importers may buy the dollar on dips.
