The Indian rupee opened nearly unchanged on January 22 at 86.5650 against the US dollar but saw a marginal dip due to foreign investor outflows. By 9:30 AM, the local currency was trading at 86.5938, slightly weaker than its previous close of 86.5863.
The market participants expect rupee to trade in a range as global uncertainty and RBI interventions are the two factors that cause the movements. “The stability can be sustained if the RBI measures like longer tenure buy-sell swaps persist,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors LLP.
On 21 January, rupee had presented early strength by opening at 86.3875 on 28 paise higher than Friday’s closing on Donald Trump inauguration and indication that he is giving possible tariffs to Canada and Mexico.
According to Amit Pabari, managing director at CR Forex Advisors, the near-term trade range for the USD/INR pair is expected in between 86.20 and 86.80 with strong support at 86.20 and strong resistance at 86.80 in the markets while he remains cautious regarding global trade development.
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Source: Moneycontrol
News Desk
