Rupee to contend with slump in oil prices, persistent dollar bids

Source from www.reuters.com Updated on Fri, 15 Dec 2023 Any question please contact DayDayFinance.COM.
A man counts Indian currency notes inside a shop in Mumbai

A man counts Indian currency notes inside a shop in Mumbai, India, August 13, 2018. REUTERS/Francis Mascarenhas/File Photo Acquire Licensing Rights

MUMBAI, Nov 17 (Reuters) - The Indian rupee is likely to open little changed on Friday amid a further decline in oil prices and persistent dollar buying interest.

Non-deliverable forwards indicate rupee will open at 83.23-83.24, nearly unchanged from the previous session.

Brent crude on Thursday dropped 4.6% to the lowest since July on worries over demand. The benchmark was hovering near $77.50 in Asia hours and is headed for its fourth straight weekly decline.

Advertisement · Scroll to continue

The rupee's rally to near 83 earlier this week faced significant resistance.

"This week we have seen more evidence that any sort of dips (on USD/INR) is running into a mountain of bids," a forex trader at a bank said.

"Based on that, there is little in pushing the pair lower."

The rupee's realised and implied volatility is hovering near multi-year lows.

"Net-net, there is no volatility so it (the rupee) will stay in the tight range." another trader said.

Advertisement · Scroll to continue

Most Asian currencies inched up, bolstered by a drop in U.S. yields. The 10-year U.S. treasury yield fell 8 basis points on Thursday, and was at 4.43% in Asia hours, near a 2-month low.

U.S. data out on Thursday provided investors reasons to pile into Treasuries. Initial claims for unemployment benefits rose to 231,000 compared to the 220,000 reading expected by economists polled by Reuters.

Meanwhile, industrial production fell 0.6% month-on-month in October, with manufacturing output down 0.7%.

Advertisement · Scroll to continue

"Manufacturing output pointed to ongoing struggles in the sector. The lagged effects of monetary tightening are now feeding through, and we expect further moderation across output, labour and inflation in coming months and quarters," ANZ said in a note.

Federal Reserve Governor Lisa Cook said on Thursday that U.S. economic risks were two-sided and a 'soft landing' was possible.

KEY INDICATORS:

** One-month non-deliverable rupee forward at 83.27; onshore one-month forward premium at 5 paisa

** Dollar index down at 104.32

** Brent crude futures at $77.6 per barrel

** Ten-year U.S. note yield at 4.43%

** As per NSDL data, foreign investors bought a net $183.3 mln worth of Indian shares on Nov. 15

** NSDL data shows foreign investors bought a net $128.9 mln worth of Indian bonds on Nov. 15

Reporting by Nimesh Vora; Editing by Varun H K

Our Standards: The Thomson Reuters Trust Principles.

Related recommendations

Bermudian Dollar

Bermudian Dollar2009BMD1002009BMD102009BMD202009BMD22009BMD502009BMD5

Tue, 01 Jul 2025
/
6211 views

Hungarian Forint

Hungarian Forint2015HUF100002018HUF10002017HUF200002016HUF20002017HUF50002018HUF500

Tue, 01 Jul 2025
/
7130 views

US Dollar

The US Dollar is the currency of the United States of America and several other countries and territories. It is also the most widely used currency in international trade and finance, and the main reserve currency of the world. Here is a brief introduction of the US Dollar:The US Dollar was

Wed, 25 Jun 2025
/
8558 views

Comorian Franc

The Comorian Franc is the official currency of the Comoros, a small island nation located in the Indian Ocean. It was introduced in 1981 to replace the French Franc, which had been in use since the country's colonial period. The currency is issued by the Central Bank of the Comoros and is available in both paper and coin form. The exchange rate of the Comorian Franc is determined by market forces and is subject to fluctuations. While the currency has faced some challenges in the past, such

Sun, 22 Jun 2025
/
11708 views