Indian Rupee edges higher with Asian peers and Dollar-rupee forward premiums increase
The rupee (USDINR) stood at 83.70 against the U.S. dollar, up from its previous close of 83.72. The currency had hit a record low of 83.7450. Asian currencies rose between 0.1% and 0.8%, while the dollar index (DXY) was at 104 after declining 0.4%.
Local oil companies also sought dollars, and the general market bias remained towards mild depreciation. This suggests the rupee is unlikely to rise above 83.60 without large inflows. Meanwhile, dollar-rupee forward premiums rose, with the 1-year implied up 3 basis points to 1.88%, nearing a six-month high. This rise was aided by the decline in U.S. Treasury yields.
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Disclaimer:
Traderes are now awaiting the U.S. jobless claims data, followed by the closely watched jobs report. These reports will offer further insights into the U.S. economy and could influence future rate cut expectations. Risk management is advised for those who are seeking opportunities to profit from the financial market.
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