MUMBAI, Aug 9 Reuters The Indian rupee is expected to struggle at the opening on Wednesday in the wake of the dollar index39;s move higher on weak risk appetite.
Nondeliverable forwards indicate rupee will open slightly weaker to the U.S. dollar from 82.8275 in the previous session.
If you take into account the current level, it is to be expected that incremental moves higher on USDINR will be quite slow and measured, a forex trader at a bank said.
USDINR longs, which we do not think are too many, may not like this measured pace, but will take comfort that 83 is just right there.
The rupee over the last couple of sessions has repeatedly taken support at around 82.8082.85, which a few market participants reckon is due to the Reserve Bank of India39;s intervention.
The dollar index climbed 0.5 on Tuesday, helped by the drawdown on U.S. equities. China39;s disappointing trade data and a downgrade of U.S. midsized banks hurt risk sentiment.
Moody39;s cut the credit ratings of 10 small to midsized U.S. banks and placed six large lenders on review for potential downgrades on strains from higher funding costs and rising risks.
Investors now await the U.S. inflation data due Thursday. On Wednesday, China put out its inflation numbers, which showed that deflation risks were building.
Unless the upcoming U.S. inflation data is way different from consensus, USDINR could stick to the current range for some more time, said Srinivas Puni, managing director at QuantArt Market…