On Thursday , USDINR pair opened 23 pips weaker @ 69.10/11.
DOLLAR advance keep USDINR subdued in early trade.
Indian 10 year bonds demand favorable for domestic currency pair (USDINR) but equity market selloff keep pair in range-bound.
After a decade, the Reserve Bank of India is set to lift the ban on ‘exotic currency derivatives’, the double-edged, fancy products that had left a trail of destruction in 2007-08 amid allegations of mis-selling and court battles when bets by corporates backfired as the euro, Yen and Swiss franc surged.
INTRADAY RANGE - 68.75 ( 68.86 - 69.09 ) 69.32
On Wednesday, At the Interbank Foreign Exchange (forex) market, the domestic currency opened lower at 68.99 a dollar but soon pared some losses. It finally settled at 68.88 per dollar, down 2 pips over its previous close.
On Tuesday, USDINR had appreciated by 10 pips to 68.86 on robust response to RBI's rupee-dollar swap auction.
Growth-sensitive currencies have taken a beating recently on rising risks to the global economy, highlighted by the shakeout in U.S. bond yields which signaled a future recession there.
Sterling was on the back foot after an offer by British Prime Minister Theresa May to quit to get her European Union divorce deal through parliament failed to win over key opponents of the agreement.
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