TokyoTokyo Mon - Fri 10:00-18:00 +81 (366) 701-751

Rupee likely to edge higher on oil price tumble

Mount Equity Group Tokyo Japan > News > Markets > Rupee likely to edge higher on oil price tumble

By Nimesh Vora

MUMBAI (Reuters) – The Indian rupee is expected to open higher against the dollar on Wednesday after oil prices plunged by the most in three months on concerns over demand.

The rupee is likely to open at 82.80-82.82, compared with 82.88 in the previous session.

On the interbank order matching system, the rupee had fallen to 83.0650 after regular over-the-counter trading hours on Tuesday, and the 1-month USD/INR non-deliverable forward had climbed to near 83.20.

It would not have been a surprise had the rupee opened well below 83, building on yesterday’s momentum, a trader at a Mumbai-based bank said.

Oil prices have saved the day for the rupee, just as the central bank did on Tuesday, the trader said.

The Reserve Bank of India was suspected of selling dollars via public sector banks in the previous session to prevent the rupee from falling below the 83 level, according to traders.

Brent crude futures plunged 4.4% overnight,…

Read more…