The rupee was quoting at 82.20 to the dollar at
11:32 a.m. IST compared with 82.3375 in the previous session.
The local currency reached a high of 82.10.
"The usual importers' orders that we consistently see on
dips (on USD/INR) means the 82-level holds," a trader at a
private sector bank said.
"On dips, it is either the oil companies or the Reserve Bank
of India that the rupee has to contend with. The last day of the
fiscal year is an added reason for the RBI to buy dollars."
The rupee's level on the last day of the fiscal year could
potentially impact the RBI's dividend payout to the government,
according to economists.
Asian currencies were higher on the day, assisted by the
upbeat risk that affected demand for the safe-haven dollar and
U.S. bonds. Receding worries over the U.S. banking sector is
prompting investors to be more constructive on risk.
The two-year U.S. yield is now at 4.12%, about 55 basis
points (bps) off recent lows. The dollar index has
declined to around the 102-level.
U.S. Federal Reserve rate hike expectations have responded to
the abating banking fears. There is now a 55% chance that the
Fed will raise rates at the May meeting, compared with around
16% a week ago, according to the CME FedWatch Tool.
Investors' focus will now shift to U.S. inflation, which was
seen as key before the banking turmoil. The U.S. core PCE
(Personal Consumption Expenditures) Price Index is due later
Friday.
"Here, the Fed will be hoping there are signs of cooling
inflation," Michael Hewson, chief market analyst at CMC Markets,
said.
(Reporting by Nimesh Vora; Editing by Janane Venkatraman)
By Nimesh Vora
MUMBAI, March 31 (Reuters) - The Indian rupee was
trading higher versus the U.S. currency on Friday, helped by the
dollar's struggles and the positive risk mood.
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