Mumbai, March 10 (Reuters) – The Indian rupee may open on Monday despite the weak dollar as concerns over global trade tensions continue to reduce risk appetite, while importers’ hedging requirements may also overwhelm the currency.
A month-long non-delivery forward suggests that the rupee will open for $87.15, while its previous 86.8725 will open. The U.S. dollar index was 103.7, hovering at a four-month low on Friday after data showed that the U.S. economy created slightly lower jobs than in February, while the unemployment rate increased. Other Asian currencies are mostly weak, which fell 0.2% in the Chinese Yuan in the offshore losses of the Chinese yuan due to concerns about China’s establishment of deflationary pressure.
President Donald Trump’s tariff policy is also likely to be concerned about concerns about the growth impact of the global trade war, especially as the U.S. economy shows signs of a slowdown.
Risk risks have driven investors to safe haven currencies like the Japanese yen and Swiss Franc, which are traded at multiple month highs. U.S. Commerce Secretary Howard Lutnick told Today Today Texvision on Friday that India’s high tariffs need to rethink their “special relationship” with the United States and should be lowered. Analysts say India could be very vulnerable to Trump’s reciprocity tariffs due to the country’s high import taxes, which are expected to take effect in April.
A FX salesperson at a foreign bank at a foreign bank said that in addition to the risk aversion associated with tariffs, importers’ appetite for “dumping against the US dollar” may keep the local currency limited in the near future.
Consumer inflation data from the United States and India will expire on Wednesday as they will affect expectations for national central banks to cut tax rates.
** One month’s non-transferable Rs forward is 87.34; onshore 1 month’s forward senior at Paisa
** Dollar index is 103.73
**Brent crude futures fell 0.6% to $70 a barrel
**The U.S. 10-year bill yield is 4.28%
** Foreign investors sold $303 million worth of Indian shares on March 6, according to NSDL data
** NSDL data shows that foreign investors sold $8.3 million worth of Indian bonds on March 6 (Report by Jaspreet Kalra; Edited by Varun HK)
