Asian currencies, meanwhile, managed a recovery with the Chinese yuan, the Korean won and the Indonesian rupiah up between 0.1% to 0.2%. The dollar index slipped.
The bit of a positive opening for the rupee will be a relief for traders who are counting on the 82.90-83.00 level to hold, a spot dealer at a private sector bank said.
The rupee had declined to 82.92 to the dollar after the normal OTC trading hours on the interbank order matching system , the dealer pointed out, adding that it is "almost certain" that the rupee will see another quiet session during the day, hovering just above the 83 handle. Asian currencies will receive help from the slight pullback in U.S. yields. The U.S. Federal Reserve peak rate expectations were largely unchanged at 5.35%. Investors digested the minutes of the Fed's Jan. 31-Feb. 1 meeting in which the central bank had raised rates by a quarter percentage point.
Nearly all Fed policymakers rallied behind a decision to
further slow the pace of interest rate hikes at the U.S. central
bank's last policy meeting, but also indicated that curbing
unacceptably high inflation would be the "key factor" in how
much further rates need to rise. "The February minutes sent a fairly balanced message, with
continued focus on inflation and tightening but with the
acknowledgement that risks to the economic outlook are becoming
more evenly distributed," Morgan Stanley said in a note.
KEY INDICATORS:
** One-month non-deliverable rupee forward at 82.92;
onshore one-month forward premium at 12 paise
** USD/INR NSE February futures settled on Wednesday at 82.9125
** USD/INR February forward premium at 1.5 paise
** Dollar index inches lower to 104.38
** Brent crude futures up 0.3% at $80.8 per barrel
** Ten-year U.S. note yield at 3.92%
** SGX Nifty nearest-month futures up 0.3% at 17,612
** As per NSDL data, foreign investors bought a net $124.3mln
worth of Indian shares on Feb. 21
** NSDL data shows foreign investors sold a net $86.9mln worth
of Indian bonds on Feb. 21
(Reporting by Nimesh Vora; Editing by Dhanya Ann Thoppil)
