The Indian rupee is expected to open little changed to the dollar on Monday, with the focus on the Union budget, the U.S. Federal Reserve's policy decision and the fallout of the Adani Group episode.
The rupee is likely to open around 81.5225, the same level as on Friday. The rupee underperformed its Asian peers last week, posting its worst performance since mid-December on the back of likely dollar purchases by the Reserve Bank of India and hedging by importers.
There has so far been limited impact on the rupee of the slump in Indian equities due to a U.S. short-seller's report on Adani Group thatStill, analysts reckon that the Adani development poses a challenge for the rupee, with foreign outflows from Indian equities picking up in wake of Hindenburg Research's report on Wednesday.
The dollar index was hovering near 102, while most Asian currencies were slightly higher. All eyes are on the Fed policy decision due during U.S. trading hours on Wednesday. While the Fed is widely expected to announce a smaller 25 basis point rate hike, its guidance on future policy is what will affect the market. Fed futures have priced in rate cuts by the central bank later this year.
India's federal budget will be presented on the same day as the Fed decision. The budget's impact on local equities and the bond yields will be important aspects for the rupee, according to traders.** One-month non-deliverable rupee forward at 81.68; onshore one-month forward premium at 11 paisa** USD/INR Feb forward premium at 11.5 paisa** Ten-year U.S. note yield at 3.52%** As per NSDL data, foreign investors sold a net $31.4 million worth of Indian shares on Jan.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Two Indian fighter jets crash: policeTwo Indian Air Force fighter jets crashed in an apparent mid-air collision while on exercises around 300 kilometres south of the capital New Delhi
Read more »
Rotterdam Selection ‘Follower’ Tackles Radicalization of Indian YouthThe burning and very current topic of radicalization of Indian youth is the core subject of Harshad Nalawade’s “Follower.” The film has its world premiere at the International Fil…
Read more »
Indian Air Force fighters jets crash in mid-air, killing pilotTwo other Indian Air Forces pilots were injured in the crash.
Read more »
Indian Air Force fighters jets crash in mid-air, killing pilot: See the wreckageTwo fighter jets in India's Air Force crashed into each other Saturday, leaving one pilot dead and two others injured and landing in an open field.
Read more »
Upstart Indian Shipper Helps Get Russian Oil to MarketRussia is keeping its oil moving, defying fears that sanctions would lead to a plunge in exports, with the help of a number of international startups plying new trade routes to mostly Asian buyers
Read more »
Adani's $2.5 billion share sale faces crucial day after Indian routSeven companies in the conglomerate, led by Asia's richest man, saw sharp falls in their values after a Hindenburg Research report flagged concerns about high debt levels and the use of tax havens.
Read more »