By Nimesh Vora
MUMBAI, April 20 (Reuters) - The Indian rupee, having
lost ground to the U.S. dollar over the last three days, found a
bit of support in early traders, while forward premiums held
declines.
The rupee was at 82.20 to the dollar by 10:54 a.m.
IST, broadly unchanged from the previous session. The local
currency will be hoping to halt a losing run that has pushed it
to its lowest in two weeks.
The rupee has came under pressure on the back of dollar
demand from importers and a recovery in U.S. yields, Amit
Pabari, managing director at CR Forex, said.
Traders are looking to gauge if the rupee's downside
momentum will persist following the subdued at open.
"Expectedly, its quiet at open. As a trader, you are
basically feeling it out whether the up move (on USD/INR) has
more legs or whether it will stall around here," a spot dealer
said.
The move higher on USD/INR has usually happened later in the
session and we could have a repeat of it, he said.
Other Asian currencies were mixed, while the dollar index
was only marginally lower.
The muted move comes the in wake of odds of the U.S. Federal
Reserve hiking rates by 25 basis points in May nearing 90%, and
in the absence of top-tier U.S. data releases. Meanwhile, USD/INR premiums were broadly unchanged after
Wednesday's plunge. Swap traders reckon that the move up in U.S.
yields following the higher-than-expected UK inflation data is
responsible for sending the 1-year USD/INR forward implied yield
to the lowest in six weeks.
(Reporting by Nimesh Vora; Editing by Varun H K)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.