Rupee's surprise Friday recovery faces test from weak peers, fragile risk
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓The Indian rupee is expected to open flat at 94.94-94.98 to the US dollar on Monday after a surprise recovery on Friday.
- ✓Traders said the currency faces a difficult time sustaining gains due to weak Asian peers.
- ✓A trader noted, "It was a surprise recovery and very much against the trend."
Story at a Glance
- Category
- MARKET
- Reported By
- Business Line
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
The Indian rupee's surprise flow-driven recovery on Friday may prove harder to sustain, with weakness across Asian currencies and a deteriorating risk mood weighing on sentiment, while a dip in oil prices may offer relief.
The rupee is expected to open largely flat at 94.94-94.98 to the US dollar on Monday, per traders.
The local currency spent most of last week under pressure, falling to 95.28 on Friday before reversing course on heavy dollar selling by a large foreign bank, according to traders.
It was a "surprise" recovery for the rupee and "very much, against the trend", a currency trader at a private sector bank said.
Friday's recovery strengthens the view that the rupee will remain range-bound around the 95-per-dollar level for now, he said.
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