India rupee trades in narrow range against UAE dirham

Rupee is likely to stay in the same 5-6 paisa range throughout the day, say experts

By Reuters

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Photo: AFP
Photo: AFP

Published: Fri 24 Nov 2023, 10:34 AM

The Indian rupee traded in a very narrow range early on Friday as traders looked for new cues that could spur some momentum in the local unit.

The rupee was at 83.3575 against the U.S. dollar (23.15 dirhams) as of 10.45 am IST (9.15 am UAE time), little changed from its close at 83.3475 (23.15 dirhams) in the previous session. The rupee was contained in a 83.3450-83.3650 range in the session so far.

Asian currencies edged lower with the Korean won and Thai baht dipping by 0.4 per cent.

[For real-time forex rates, click the widget below or visit KT's dedicated Trading News page here.]

The dollar index was steady at 103.7 as global markets were largely muted following the Thanksgiving holiday in the United States.

The rupee is "likely to stay in the same 5-6 paisa range through the day," a foreign exchange trader at a private bank said.

U.S. Treasury yields rose in Asia with the 10-year yield inching up to 4.46 per cent and the 2-year ticking higher to 4.94 per cent.

While IPO-related inflows offered some support to the rupee during this week, the local unit was unable to gain much as sustained dollar demand from local companies kept up the pressure, traders said.

Maiden share sales worth $900 million were lined up in the domestic market this week.

"Lacklustre moves continue ... We will look for slippage below 83.26 to spot loss in strength (on USD/INR)," Anand James, chief market strategist at Geojit Financial Services, said.

Investors now await U.S. inflation due next Thursday. October's core personal consumption expenditure (PCE)inflation, a closely watched inflation gauge, is expected to moderate to 0.2 per cent month-on-month, from 0.3 per cent in September, according to a Reuters poll.

A lower than anticipated inflation print could cement bets that the Federal Reserve won't tighten policy rates further.

Investors are currently pricing in possible Fed rate cuts in May or June.

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