Rupee ends flat at 95.95 as RBI dollar sales offset pressure
On Wednesday, the Indian rupee maintained its position at 95.95 against the US dollar, thanks to the central bank's dollar sales which helped stabilize its value. However, ongoing demand from oil firms and importers kept the currency under strain....
By ET Bureau | Updated:
Reuters
Rupee is expected to trade between 95.75 and 96.25 on Thursday.
Mumbai: The Indian rupee slipped modestly to 95.97 on Wednesday, but dollar sales from the central bank led the local currency to close unchanged at 95.95 to a dollar.
Traders said demand for US dollars from importers and oil companies kept the rupee under pressure, while expectations of a US Fed rate hike later in the day prevented the local unit from appreciating despite a record foreign-currency haul that has boosted Mint Road's forex stockpile.
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The rupee traded in the range of 95.84 and 95.98 on Wednesday, with the RBI likely selling dollars at weaker levels, dealers said. Market participants expect the rupee to weaken past the 96 level if there is a rate hike by the US Fed or if the Fed chair gives a hawkish commentary.
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Rupee is expected to trade between 95.75 and 96.25 on Thursday. "I expect the rupee to remain under 96 for some time unless oil prices rise above $110 per barrel and the dollar index crosses 100," said Anil Bhansali, head of treasury, Finrex Treasury Advisors.
Traders said demand for US dollars from importers and oil companies kept the rupee under pressure, while expectations of a US Fed rate hike later in the day prevented the local unit from appreciating despite a record foreign-currency haul that has boosted Mint Road's forex stockpile.
Read more: NSE IPO: Every Rs 10 move in shares could swing Radhakishan Damani’s wealth by nearly Rs 40 crore
The rupee traded in the range of 95.84 and 95.98 on Wednesday, with the RBI likely selling dollars at weaker levels, dealers said. Market participants expect the rupee to weaken past the 96 level if there is a rate hike by the US Fed or if the Fed chair gives a hawkish commentary.
Read more: Shriram Finance plans $500 million bond buyback
Rupee is expected to trade between 95.75 and 96.25 on Thursday. "I expect the rupee to remain under 96 for some time unless oil prices rise above $110 per barrel and the dollar index crosses 100," said Anil Bhansali, head of treasury, Finrex Treasury Advisors.
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