MUMBAI, July 14 (Reuters) – The Indian rupee is expected to open higher on Friday as the U.S. dollar slid even further on bets that the Federal Reserve is near halting its rate hike cycle.
Non-deliverable forwards indicate rupee will open at around 82 to the U.S. dollar compared with 82.0725 in the previous session.
The rupee on Thursday managed to strengthen past 82, but was unable to sustain on forward dollar demand from importers, some traders said. Two of them said it was possible that the Reserve Bank of India (RBI) was on the bid side on USD/INR.
It will “not surprise anybody if the RBI bought dollars yesterday”, a forex dealer at a bank said, adding that he was betting that the currency would hold at 82.
The dollar’s decline following the lower-than-expected U.S. June inflation data on Wednesday showed no signs of pausing. The dollar index was down to 99.64, the lowest since April 2022. The gauge has tumbled 2.5% this week.
The…
