Author: Nimesh Vora
Mumbai (Reuters) – The Indian rupee will open on Wednesday amid weak U.S. consumer confidence data, adding to anxiety about the U.S. economic trajectory.
The recovery of equal flow should provide additional power to the Rs.
A one-month non-delivery forward suggests that the rupee will open against the US dollar at a price of 85.62 to 85.64, compared with the previous session at 85.7550.
The Indian currency won a nine-day victory on Tuesday, during which it rose by 2%. According to bankers, foreign capital returns Indian shares to Indian shares in the softer dollar, while liquidation of bearish rupee bets contributed to this growth.
Foreign investors acquired more than $600 million worth of Indian stocks on Tuesday, flowing in more than $2 billion in the past four trading days.
A currency trader at a Mumbai bank said Tuesday's price action was a correction of expectations after the currency's “super upgrade”.
The trader expects the US dollar/Indian rupee to drop from the 85.50 to 86 range for interest purchases on U.S. tariffs.
Next Wednesday, U.S. President Donald Trump will reveal the specifics of the tariffs he plans to implement.
US data is weak
Treasury earnings fell on Tuesday, under pressure from consumer confidence data and fears about the economic outlook.
Consumer confidence index fell to a four-year low of 92.9, with households reporting the highest pessimism in 12 years, according to data from the U.S. Conference Committee.
The data suggests “the potential softness of consumer spending at their discretion, which, according to our estimates, accounts for about 20% of consumer spending,” the Australian Bank said in a report.
“Tariff anxiety continues to play a role in a highly worried level.”
Key indicators:
** One month's non-transferable rupee striker is 86.02; Paise's 31-year-old land striker senior
**The US dollar index fell to 104.18
**Brent crude futures rose 0.5% to $73.4 a barrel** US 10-year note yield was 4.33%**, according to NSDL data, foreign investors bought $723 million worth of Indian stock on March 24
** NSDL data shows foreign investors bought $15.7 million worth of Indian bonds on March 25
(Reported by Nimesh Vora; Edited by Mrigank Dhaniwala)
