Rupee likely to inch higher tracking non-deliverable forwards
the Indian rupeesDespite the weak Asian signs, it is preparing to open slightly higher against the US dollar on Monday, tracking non-deliverable futures contracts.
The one-month non-deliverable rate indicates that the rupee will open at around 82.40 for the US dollar compared to 82.48 in the previous session.
The slightly higher open indicated by the NDF came in the back of the week marked local currency In the range of 82.07 to 82.70. A dovish Fed was countered by an escalating banking crisis after a sell-off in Deutsche Bank shares.
The rupee on Friday came under pressure later in the session on concerns about Deutsche Bank.
A trader at a bank in Mumbai said the currency’s moves later on Friday were a bit exaggerated, with European markets in a state of panic. He added that the rupee will “try to correct itself” at the opening today.
A few traders mentioned the possibility of inflows in the last week of March to help the rupee this week.
The rupee’s Asian counterparts were mostly weak, and the dollar index extended to Friday’s advance. Asian stock indices were mostly lower even though US stocks closed last week on a positive note.
Investors’ focus was explicitly on developments related to the US and European banking systems. to fail Two regional banks in the United States And Credit Suisse fall this month It sparked fears of a banking contagion and prompted global regulators to calm the markets.
“Hopes that central banks will be able to hedge the banking crisis and prevent a massive contagion dominate concerns about increasing vulnerabilities in the banking system,” said Srinivas Pune, managing director at Quantart Market Solutions.
“Movement in currencies, including the rupee, now depends on daily headlines about the banking crisis.”