Importers were advised to add hedges when USD/INR dipped
near 81.60-levels, said Ritesh Bhansali, vice president at
Mecklai Financial Services.
"Risk events like the Federal Reserve Chair Jerome Powell's
two-day testimony to lawmakers mid-week and the U.S. jobs report
on Friday could see the rupee rally be impacted," he added.
Considering that the Fed peak rate is being revised
repeatedly, these gains in the rupee "are welcome" but may not
sustain for long as all emerging market currencies will have to
navigate a tough macro environment, ANZ India's head of trading
Nitin Agarwal said.
Bhansali was of a similar view and reckoned domestic traders
would buy dollars at current levels and possibly sell above
82.50.
On Friday, the rupee had managed to break the narrow
82.40-83.00 range to firm past 82-levels on the back of one-off
dollar inflows, which traders attributed to a pick-up in equity
markets and stop losses being triggered, among other factors.
Indian stocks have risen more than 2% over two
sessions.
(Reporting by Anushka Trivedi; Editing by Janane Venkatraman)
By Anushka Trivedi
MUMBAI, March 6 (Reuters) - The Indian rupee ended
marginally higher on Monday, giving up most of the day's gains
as the Chinese yuan fell and the dollar index rebounded
slightly.
The rupee finished at 81.91 per dollar, compared to
its previous close of 81.9650. The currency climbed up to
81.6350 during the session, its highest level since Jan. 31.
Towards the end of the session, the local currency reversed
its direction as the dollar index recouped losses and
offshore Chinese yuan fell 0.6%, while traders cited
dollar buying by state-run banks.
The yuan came under pressure after the country set a
softer-than-expected economic growth target for 2023.
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