The carry has come down over the course of last few sessions, but when the rupee's overall price action is considered, a 6 paisa carry "looks decent," a spot trader at a private sector bank said. "Obviously when we open tomorrow, the initial quotes on rupee could very well reflect this carry." The bank's corporate book is "lined up" with orders from importers just ahead of the 82 support on pair, the trader said. Meanwhile, the dollar index inched lower to near 102.60, in the backdrop of a slightly better risk mood. Asian shares were mostly higher and U.S. equity futures inched up. Indian shares reversed early gains and was trading down.
Worries over the U.S. banking sector lessened to an extent
following First Citizens BancShares' agreement to buy all of
Silicon Valley Bank's deposits and loans.
The dollar had previously benefited from a risk-off
fuelled by the U.S. banking contagion fears.
The focus now shifts to the U.S. data, with Conference
Board’s consumer confidence data due later in the day.
"Consensus expects the consumer index will fall a third
month to 101 in March from 102.9 in the previous month," DBS
Research said in a note. A plunge in the index will be seen as a
sign of a probable deeper recession, it said.
(Reporting by Nimesh Vora; Editing by Dhanya Ann Thoppil)
