Indian cenbank likely intervened in non-deliverable forwards to support rupee, traders say
MUMBAI, Oct 4 (Reuters) -The Reserve Bank of India likely intervened in the non-deliverable forwards market before the local spot forex market opened on Friday to support the rupee, which is pinned close to its record low level, four traders told Reuters.
The rupee INR=IN opened at 83.9425, slightly higher than its close at 83.9675 on Thursday, aided by the central bank's intervention.
The currency has remained under pressure over recent trading sessions on account of heightened outflows from local equities and a sharp rise in crude oil prices spurred by concerns of a wider conflict in the Middle East.
Asian currencies were mostly weaker between 0.1% to 0.8% while the dollar index was at 101.9, hovering close to its highest level in six weeks.
The rupee is likely to "stick to a narrow trading range" on Friday as the RBI is unlikely to allow it to fall below 84, a trader at a state-run bank said.
Reporting by Jaspreet Kalra, Nimesh Vora; Editing by Mrigank Dhaniwala
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
