The Indian rupee gained in the early trade on Friday. It has opened higher by 6 paise at 64.78 per dollar versus previous close 64.84.Yesterday the rupee fell by nearly 70 paise (1.1 percent) to close at 64.84 to the dollar, tracking losses in domestic equities and other emerging market currencies.
Ashutosh Raina of HDFC Bank said, “Political uncertainty continues to cloud the dollar outlook, coupled with Brazilian crisis impacting the emerging market currencies adversely. We expect the USD-INR pair to be under pressure till the global risk tone improves. The pair is expected to trade in the 64.50-65.30/dollar range today.”
The bonds have been subdued after the recent rally with 10-year settling at 6.85. The risk off sentiment can keep the bonds under pressure, and expect the 10-year to trade in 6.83-6.88 percent range for today, “he added. Dollar index broke its six-session losing streak as the Federal Reserve is seen as continuing on its tightening course despite the turmoil emanating from Washington.
The Swiss franc and Japanese yen, currencies considered safe haven investments during times of uncertainty, surrendered gains against the greenback after the release of US initial jobless claims and the Philadelphia Federal Reserve’s business index.
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