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Indian rupee inches up; traders wait for next big catalyst
By Stella
The Indian rupee strengthened on Monday helped by a decline in US yields, while traders looked for triggers that could take the currency out its current trading range.
The rupee was at 22.54 to the UAE dirham by 9.10am UAE time, up from 22.572 in the previous session. The dollar index weakened on Friday and US yields dropped following lower-than-expected US job additions.
It was likely to be a quiet session for the currency, traders said, with one forex trader with a state-run bank saying it was unlikely that the rupee will move below 82.85 to the US dollar during the day.
There will be demand from oil companies around 82.70, which would potentially limit any upside to the rupee, he added.
The rupee has been in a range of 81.60-82.80 to the dollar for several weeks now, with the Reserve Bank of India (RBI) likely limiting moves outside of that range.
“Currently, the FX market is lacking any dominant theme,” said Anindya Banerjee, vice-president for currency and interest research at Kotak Securities. Banerjee expects the rupee to trade in a range of 82-83.10, unless an un-factored risk emerges on the horizon.
