The Indian rupee opened higher by 9 paise at 64.95 per dollar on Friday versus previous close 65.04.
Bhaskar Panda of HDFC Bank said, “Worries of US rate hike, consequent rally in US yields, coupled with uncertainties due to the PNB episode has brought back pressure on the INR.”
“The USD-INR pair has broken through crucial 64.80 levels and traded above 65 yesterday. Today, I expect the pair to consolidate in a range of 64.85-65.15 given the dollar fall overnight.”
“The 10-year benchmark bond yield has been rallying higher after the latest MPC minutes. I expect the trend to sustain while today’s range would be 7.72-7.78 percent,” he added.
The dollar sagged broadly after its recovery this week faded as US treasury yields declined from their recent peaks.
The dollar index against a basket of six major currencies was little changed after bouncing from a three-year trough of 88.253 late last week.moneycontrol